Vinson & Elkins advised the successful sponsor consortium partners Malakoff Corporation Berhad, Sumitomo Corporation, and Cadagua S.A. on the development and financing of the Ghubrah seawater desalination project (IWP) in Oman. The key financing documents were executed last week and financial close is expected imminently. The project is the second IWP in Oman and will supply water for daily use equivalent to the amount consumed by approximately 800,000 people.
The V&E team was led by partners Jon Nash and Dominic Harvey and assisted by associates Christina Kersey, Shane Wilson, Barry Cosgrave, and Amanjit Fagura. The lenders were advised by Allen & Overy.
Jon said “The Ghubrah deal has faced many challenges including the adoption of a new model form of water purchase agreement in the background of the imminent amendment to the Electricity Sector Law to provide for independent regulation of stand-alone water projects in Oman. The project is also the first stand-alone water project in the MENA region to benefit from JBIC funding. We are delighted to have helped our sponsor clients to conclude such an important deal that will provide substantial water supplies to Oman’s capital city.”
Jon previously advised the sponsors on the Sur IWP, which is the first IWP to be developed in Oman.
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