BDCC Investment Company (BDCC), a special purpose vehicle that is wholly-owned by an infrastructure fund currently managed by Arqaam Capital, has sold its equity interest in Sembcorp Salalah Power and Water Company (SSPWC) in a trade sale transaction to the Diwan of Royal Court Pension Fund, the state fund of the Sultanate of Oman.
BDCC invested in SSPWC in late 2011, during its construction phase. This investment was part of the infrastructure fund’s strategy to create a balanced portfolio across brownfield and greenfield assets.This was meant to align the risk and return profiles with extant investment policy.
Suhail Hajee, head of the infrastructure asset management division at Arqaam, commented on the exit: “We are pleased to have played an instrumental role alongside our fellow founding shareholders and the management team of SSPWC in shaping the success story of the company. SSPWC has been a great investment for us and we believe it will continue to be so in the future.”
Power and water demands are expected to increase in the Middle East & North Africa (MENA), due to sustained economic growth, an expanding population and high levels of electricity and water being consumed domestically, relative to other regions.
Dennis Wijsmuller, COO of Arqaam Capital, said, “With governments across the region increasingly encouraging an active role of the private sector in infrastructure investments, Arqaam is well positioned to continue playing a major role in this important asset class.”
He added, “This milestone validates the infrastructure asset management team’s ability to achieve returns for our investors throughout the full investment cycle having sourced the investment in 2011, exited partially via an IPO in 2013 and completed a full trade sale in 2015.”
In commercial operations since May 2012, it is the largest and most energy-efficient power and water plant in the Dhofar Governorate in Oman. With a net power capacity of a 489 MW and water capacity of 15 million imperial gallons daily, the facility currently supplies more than 70 per cent of the power dispatch and 100 per cent of the net installed desalinated water capacity of the Dhofar Governorate.