French energy giant Engie has announced the successful financial close of the Barka 3 and Sohar 2, two CCGT plants with approximately 744 MWof generation capacity each. 

The refinancing comes following 15-year extensions of both plants’ power purchase agreements (PPAs) earlier this year, which secures their long-term operations through 2043.

By aligning the projects’ debt profile with the extended PPA term, the transaction establishes a strong long-term financing framework and supports future capex needs, including refurbishment works aimed at enhancing the reliability and long-term performance of both assets, said Engie in its LinkedIn post.

Reaching financial close reflects the strong collaboration between the project companies, sponsors, financing partners and advisers involved in delivering this transaction.

Signed with Nama Power and Water Procurement Company (PWP), the agreements extend both assets from April 1, 2028, securing the longest PPA extension achieved to date in Oman and supporting the continued operation of two critical assets within the country’s electricity system.

"As Oman’s energy system evolves, Barka 3 and Sohar 2 continue to support reliable supply, grid stability and the flexibility needed to complement growing renewables," said a company spokesman.

"A significant refinancing milestone for Barka3 and Sohar2. Congratulations and thank you to everyone involved in bringing the transaction to a successful close," he added.-TradeArabia News Service