Marubeni consortium inks $1.6bn deal for Sur IPP
Deal covers design, finance, construction, operation and maintenance
A multinational consortium led by the Japanese conglomerate Marubeni Corporation will formally sign agreements worth an estimated $1.6bn on Tuesday, allowing full-scale construction work on Sur, Oman’s largest Independent Power Project to begin.
In June, the consortium, which also includes Chubu Electric of Japan, Qatar Electricity and Water Company and Oman’s Multitech, won the license to develop the estimated 2,000MW power-only facility following highly competitive international tender process.
The mandate for the deal covers the design, finance, construction, operation and maintenance of the IPP as part of a 15 year agreement with the state-owned Oman Power and Water Procurement Company (OPWP).
OPWP’s implementation timeframe requires early power, equivalent to around 400MW of capacity, to be brought on stream ahead of the 2013 summer. The remaining 1,600MW is scheduled to come online a year later.
Preliminary construction work has already started on the IPP.
The Sur IPP represents the conglomerates’ maiden investment in the Sultanate’s rapidly growing power generation sector. Marubeni has a 50% stake in the project company and will be the lead developer.