DUBAI Jan 15 Private investment funds
Terra Nex of Switzerland and Germany's Middle East Best Select
(MEBS) plan to build 400 megawatts (MW) of solar power
generating capacity in Oman, the European investors said on
Terra Nex, a wealth management company specializing in
Middle East investment, and MEBS plan a 2-billion dollar
integrated project to develop solar technology in the oil and
gas exporting country, including facilities to manufacture solar
panels for Oman and for export.
"Oman's stable business environment and pro-environmental
policies makes the Sultanate a natural partner to this project,"
David Heimhofer, chairman of Terra Nex, said in a statement.
"The government's aim to produce 10 percent of its energy
needs from renewable energy resources by 2020 is laudable and
this project will go a long way in making that vision a
The project would be financed largely by investors from
Germany, with MEBS mainly funded by a group of German
institutional and individual investors.
Heimhofer said about 600 million dollars of the overall
investment would come from direct equity capital, with the
remainder covered by loans from European financial institutions.
Despite plentiful sunshine the Middle East region's solar
power production is tiny compared with that of Europe, China or
the United States.
Driven by huge subsidies, Germany has become one of the
world's largest solar markets but the country has been cutting
financial support in an effort to get the industry to reduce its
(Reporting by Daniel Fineren; Editing by Greg Mahlich)