ACWA Power and Mitsui win $630m Salalah power deal

Mitsui consortium awarded contract to construct 400MW power project in south of Oman

Dhofar Power Plant
Dhofar Power Plant

Oman Power and Water Procurement Company (OPWP) has awarded a consortium of ACWA Power, Japan’s Mitsui and Co and Dhofar International Development and Investment Holding Co. with the contract to develop the Salalah 2 power project.

Mitsui will build a 400MW natural gas-fired combined cycle power plant in the Salalah Industrial Area in southern Oman at a cost of $630mn, it said in a statement.

Under the deal it will also acquire the existing Dhofar Power Plant, which has an output of 273MW, and operate both plants and sell power to OPWP under a 15-year power purchase agreement.

The Japanese company has a track record in the upstream oil and gas sector in Oman though the Salalah 2 power project marks the company’s first involvement in the development of a power plant in the country.

Mitsui and ACWA Power will each hold a 45% stake in the project which is due to begin operations by January 2018. DIDIHC will hold the remaining 10%.


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