Hogan Lovells supports Spanish company Valoriza Aguas entrance into the Omani IWP market
25 April 2016
DUBAI, 25 April 2016 – Hogan Lovells has advised the mandated lead arrangers on the successful project financing of the Sohar independent water producer ("IWP") project in the Sultanate of Oman.
The project comprises the design, construction, ownership, financing, operation and maintenance of a high efficiency desalination facility, based on seawater reverse osmosis technology.
The OR86 million (US$213 million) financing package was arranged by four Omani banks: Bank Muscat, Oman Arab Bank, Bank Sohar and Bank Dhofar, and was provided to the project sponsors, Valoriza Agua, a subsidiary of Spanish construction firm Sacyr.
Valoriza Agua will own a 51% stake in the project, with Oman Brunei Investment Company taking 25% and Sogex Oman the remaining 24%.
Hogan Lovells team was led by Dubai-based infrastructure partner Christopher Cross, with support from Sohail Barkatali (Partner, Dubai), Andrew Gallagher (Partner, London), Craig Brook (Senior Associate, Dubai), Nathan Buckley (Senior Associate, London) and Kate McComiskey (Associate, London).
The Sohar IWP project is a major milestone in the development of the Omani water sector. Along with many other Middle Eastern countries, Oman is currently facing increased demand for potable water due to a growing population. With a scarcity of water resources, this Sohar IWP project will help to ensure that the Sultanate has an adequate water supply to meet these demands. Hogan Lovells is delighted to have played a role in this project, which will provide an efficient water supply to residents of Oman for many years to come.