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Oman Power and Water Procurement Company signs agreement

Agreement to develop Salalah Independent Power Plant (Phase 2)

Oman Power and Water Procurement Company (Member of Nama Group) the sole procurer of all new power generation and water desalination capacity in the Sultanate, signed on Monday at Grand Hyatt Muscat a number of agreements to establish Salalah Independent Power Plant (Phase 2) which will have an installed capacity of 445 MW.

The agreements include the acquisition of the existing Dhofar Power Plant, which has an output of 273MW.

In attendance were a number of dignitaries including His Excellency; Shaikh Saif bin Mohammed al Shabibi, Minister of Housing; and Mohammed bin Abdullah al Mahrouqi, Chairman of the Public Authority for Electricity and Water (PAEW), as well as government officials, and representatives from the consortium and electricity sector in the sultanate.

The agreements were signed by His Excellency; Shaikh Saif bin Mohammed al Shabibi, Minister of Housing and Engineer Ahmed Bin Saleh Al Jahdhami, CEO of OPWP and on behalf of the consortium Kazuhiro Hashimura, General Manager of Mitsui & Co., Ltd., Mohammed Abunayyan, Chairman ACWA Power and Tariq Abdulhafidh Al Ujaili, Vice Chairman, Dhofar International Development and Investment Holding Co.

At a cost worth over a 240 million RO. the new natural gas-fired combined cycle power plant will have an installed capacity of 445 MW and will be connected to the existing Salalah grid. The plant is planned to be commercially operated by Q1 2018.

Speaking at the event Engineer Ahmed Bin Saleh Al Jahdhami, CEO of OPWP said: “This new capacity will contribute to the growing power demand to meet the needs of urban, industrial and tourism development in the governorate of Dhofar as well as enhancing the efficiency of gas consumption.”

OPWP released the RFP in April 2014. Bidders have competed in their technical and financial bids, and through the evaluation and negotiation process carried out by the company, the project was awarded to the consortium consisting of Mitsui & Co., Ltd., ACWA Power, and Dhofar International Development and Investment Holding Co.

Speaking at the ceremony, Kazuhiro Hashimura, General Manager of Mitsui & Co., Ltd., managing member of the consortium and Mohammed Abunayyan, Chairman ACWA Power said that they are very excited to be part of the Salalah Independent Power Project Phase II. It will give them a significant opportunity to be part of the socioeconomic development of the Sultanate through their extensive business operation knowhow and delivery of reliable electricity.

Mitsui & Co., Ltd. and ACWA Power each hold a 45 per cent stake in the project while DIDIC hold the remaining 10 per cent.