ACWA Power and Mitsui win $630m Salalah power deal
Mitsui consortium awarded contract to construct 400MW power project in south of Oman
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%.