Norton Rose advising project sponsors; full launch set for 2014

Linklaters and Allen & Overy (A&O) have advised on the $1.25bn (£795m) debt financing of Oman's Sur Independent Power Project (Sur IPP) alongside Norton Rose.

Norton Rose is advising the project's sponsors, Phoenix Power Company – a special purpose vehicle backed by Japanese investors – on the deal, which will lead to the construction of Oman's largest independent power plant. The firm's team is being led by London banking and finance partner Charles Whitney and projects partner Peter Hall.

A&O advised a consortium of lenders including Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank, Sumitomo Mitsui Banking Corporation and Standard Chartered, with the project reaching financial close last month (28 November). London project finance partner Lorraine Ball and commercial contracts partner Nigel Pritchard took the lead.

Linklaters advised Japan Bank of International Cooperation, which provided around $700m (£447m) of the consortium's debt, as well as Nippon Export and Investment Insurance, which provided a tranche of debt covered by export credit insurance.

The firm's team was led by Dubai projects consultant Jonathan Inman.

Whitney commented: "This project has had its own set of challenges above and beyond the unique issues you would normally have on a project of this kind.

"Phoenix made its bid during the Arab Spring, only to then face the Japanese tsunami and the difficulties it caused and then it closed the deal during the eurozone crisis and a difficult 
lending environment."

The power plant, which is due to be fully operational by 2014 and is located in northeastern Oman, will run on natural gas and is set to provide 2,000 megawatts to the national grid.

The Oman Power and Water Procurement Company has agreed to purchase the plant's full capacity of power for 15 years from the date of its completion.