GS Inima announces financial closure for the Barka V Desalination Plant in Oman

La financiación de 135 millones de euros tiene participación tanto de la banca internacional como de entidades locales. Barka V es una de las mayores desaladoras en la región con una capacidad de producción de 100.000 metros cúbicos al día. Está previsto que la planta entre en operación el 30 de junio del 2024.

The financing of 135 million euros has the participation of both international banks and local entities.

GS Inima, a world leader in the water sector, positioned as one of the Groups with the largest volume of plants in terms of concessions and with the longest history in reverse osmosis desalination, has reached financial closure of the Barka V desalination plant for a value of 135 million euros and whose client is Oman Power and Water Procurement.

GS Inima has obtained financing for 100% of the project’s needs by signing a 22-year non-recourse loan under the Project Finance modality and a bridge loan to finance the project’s equity (Equity Bridge Loan). Both international and local financial entities have intervened in long-term financing. The majority share is held by Korea Export-Import Bank (Kexim) followed by Bank Muscat and Standard Chartered Bank. For its part, the Equity Bridge Loan (EBL) has been financed by KEB Hana Bank London for a term of 3 years.

Additionally, through the local bank Ahli Bank, a line destined to finance the VAT of the project has been obtained, which has been an important milestone since this tax has been established very recently in Oman and therefore there were no experiences in this type of financing.

The Barka V desalination plant, located 58 kilometers west of the capital, Muscat, has a capacity of 100,000 m3/day and will supply drinking water to a population of 800,000 people. The completion of the construction and commissioning of the project is scheduled for June 6th., 2024 developed under a BOO contract basis (Build, own, operate in its acronym in English) during an operation period of 20 years.

Diego de Vera, Director de Desarrollo de Negocios de GS Inima.

“It is an honor for us to collaborate with world-class financial institutions to make the Barka V desalination plant project viable, which will contribute to the protection of the region’s water resources and provide a new source of drinking water. Together with Ghubrah III, which will be the largest IWP in the country, we will continue to contribute to the increase and improvement of water infrastructure in Oman” says Diego de Vera, Business Development Director at GS Inima.

Manuel Becerra, Director de Finanzas de GS Inima.

“The financial closure of Barka V represents an important achievement for the company, as it occurred in a scenario of high uncertainty and volatility in the financial markets caused by the pandemic and later the war situation in Ukraine. This result would not have been possible without the joint efforts of our client OPWP, the financing entities and GS Inima. Barka V reaffirms the Company’s position as a project financing partner for our clients and increases our recurring revenue base that will support GS Inima’s future growth”concludes Manuel Becerra, Finance Director of GS Inima.

Experiencia de GS Inima en desalación por osmosis inversa

GS Inima tiene un amplio conocimiento del sector de la gestión y tratamiento del agua, además de una enorme experiencia construyendo y operando plantas desaladoras en todo el mundo. El proyecto se enmarca dentro del contrato de suministro de agua firmado el 24 de diciembre en diciembre de 2020 entre OPWP (Oman Power and Water Procurement Company) y GS Inima para el suministro de agua durante 20 años. GS Inima posee un 100 % de participación de la Concesión, EPC y O&M de este proyecto.  La planta está diseñada siguiendo los más altos estándares de calidad y respeto por el medio ambiente que han caracterizado a GS Inima durante sus 67 años de historia.