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Freeing up liquidity
22 November 2010
The Middle East power sector is thriving. The Barka 3/Sohar 2 tenders attracted a record eight serious bidders. But while the developer sector attracts new entrants there are only 12, arguably 15, active international banks to finance projects. By Paul Smith.
The GCC developer market has become very competitive and a number of new entrants are trying to usurp the hegemony of GDF SUEZ, International Power (IP), Marubeni, Sumitomo and ACWA. They face a tough task. “GCC is one of the global growth markets for power projects, with long off-take contracts with government assimilated credit risk and good risk allocation,” says Gijs Olbrechts, director acquisitions, investments & financial advisory at GDF SUEZ Energy MENA. “The appetite is very strong among private equity players through to industrial players.”
“To compete with the established developers, you need to know the market and how it works. For a successful project you need to attract all the best parties: equity partners, EPC contractors, equipment suppliers and banks. So balance sheet, relationships, track record and experience are key factors – but being innovative is also an important factor.”
Developers ogling Oman
A record eight consortiums posted...
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