Ras Al Khaimah – Rooftop Solar Program 19 January, 2017 Nitin Johar, Head of Treasury Investment & Development Office, Government of Ras Al Khaimah
Table of Contents Contents
2
Page
Introduction: Emirate of Ras Al Khaimah
3
Key Credit Strengths
4
Investment and Development Office
5
Initiatives by Government of Ras Al Khaimah
6
Ras Al Khaimah’s Solar Program
7
Program Timelines
9
Introduction: Emirate of Ras Al Khaimah KEY HIGHLIGHTS
Ras Al Khaimah
Bahrain
Oman
Arabian Gulf
Qatar
• Ras Al Khaimah (“RAK”), the fourth largest of the seven emirates,
Dubai
joined the UAE in 1972
Abu Dhabi
• The Ruler of RAK, His Highness Sheikh Saud bin Saqr Al Qasimi, is a member of the UAE Supreme Council Saudi Arabia
0 0
25
50 25
Oman
• The emirate has a track record of political and social stability,
75 Kilometers 50
along with a stable and predictable policymaking environment
75 Miles
Ratings (August 2016)
•
S&P:
•
Fitch: ‘A’ Outlook Stable
Nominal GDP 2016 (f)
•
AED 36.2 BN ~ USD 9.8 BN
Key GDP Components
•
3
‘A’ Outlook Stable
• Highly diversified economy, with hydrocarbons constituting less than 5% of GDP and manufacturing being the largest contributor at 25% • Gross government debt is lower than the median for A rated sovereigns
Manufacturing, Trade, Mining, Retail Services, Financial Services, Tourism Services
• Strategic location and good proximity to ports and airports makes the Emirate as a trading and services hub
Ras Al Khaimah’s Credit Strengths Well Established STABLE POLITICAL & SOCIAL ENVIRONMENT
DIVERSIFIED & RESILIENT ECONOMY
LOW & MANAGEABLE DEBT
STRONG REVENUE BASE & STRONG REVENUE BASE BUDGET SURPLUS ECONOMY
S&P Rating Scorecard Snapshot
Ras Al Khaimah
Ireland
Slovakia
Japan
A
A+
A+
A+
Outlook
Stable
Stable
Stable
Stable
GDP Growth
1.50%
4.60%
3.0%
0.9%
Neutral
Strength
Neutral
Strength
External Assessment
Strength
Neutral
Neutral
Strength
Fiscal Assessment – Flexibility & Performance
Strength
Strength
Neutral
Weakness
Fiscal Assessment – Debt Burden
Strength
Neutral
Strength
Weakness
Sovereign Rating
Institutional Assessment
Source: S&P Sovereign Ratings ‘Research Updates’, using each sovereign’s most recent report
4
Investment & Development Office BACKGROUND
KEY PERSONNEL
• Established through an Emiri decree in 2004, responsibilities updated vide Emiri decree in 2011
Chairman
• The central financial and budget office of the Government of Ras Al Khaimah • Chaired by His Highness Sheikh Mohammed bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah
His Highness Sheikh Mohammed bin Saud Al Qasimi
CFO
Manu Mehra
Vice Chairman
Head of Treasury
His Highness Sheikh Khalid Bin Saud Al Qasimi
Nitin Johar
ROLES & RESPONSIBILITIES • Manages the Government’s balance sheet and credit rating • Acts as Financial advisor to the Government and Government entities and companies: o
Responsible for treasury management, corporate finance, investments, structuring and legal advice
o
Approves and monitors budgets and capital expenditure
o
Responsible for compilation of consolidated Government accounts on a quarterly basis
o
Central Audit Office
o
Manages and controls sovereign debt obligations
• IDO’s debt strategy includes building a diversified investor base and optimizing the match of its maturity profile with its long-term investments
5
Ras Al Khaimah’s Solar Program • Government of RAK, in line with its long term plans, is exploring a multi-phased solar program to encourage and promote utilization of solar energy in the emirate under the guidance and patronage of His Highness Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah and a member of the UAE Supreme Council • Under the leadership of the Chairman His Highness Sheikh Mohammed bin Saud Al Qasimi and the Vice-Chairman His Highness Sheikh Khalid Bin Saud Al Qasimi, Investment and Development Office Govt. of Ras Al Khaimah will be launching this program in stages over the next few years
PHASE 1: ROOFTOP SOLAR PROGRAM
Industrial Buildings 6
Commercial Buildings
Rooftop Solar Program Overview Program
: Rooftop Solar Program
Location
: Ras Al Khaimah, UAE
Capacity
: 30 - 50 MW
Program Structure
: BOO / BOOT framework
Rooftop Sites
:
Rooftop Ownership
: Government and Private entities
Off- takers
: Individual building owners and tenants
Procuring Coordinator
:
Financial Advisor
: Synergy Consulting Inc.
Legal Advisor
: Eversheds LLP
Technical Advisor
: DNV GL
7
25 – 30 sites consisting of industrial, commercial and residential buildings
Investment and Development Office, Government of Ras Al Khaimah
Program Timelines
8
Activity
Target Timeline
Expression of Interest
February 2017
RFQ Release
March 2017
RFP Release
May 2017
Signing of Project Agreements
December 17
Financial Closure
February 2018