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Mitsui-led consortium nabs $2.3bn Oman power deal

Oman Power and Water Procurement Co has awarded a deal for the 3,219MW Ibri Sohar-3 power project to a consortium comprising Mitsui, ACWA Power, and Dhofar International

The project is valued at $2.3bn. [Representational image]
The project is valued at $2.3bn. [Representational image]

Oman Power and Water Procurement Co (OPWP) announced that a consortium comprising Mitsui & Co, ACWA Power, and Dhofar International Development and Investment Holding (DIDIC) has been awarded the 3,219MW Ibri Sohar-3 power generation project.

The project is worth $2.3bn (OMR885m). 

The development is the largest single tendered independent power project (IPP) in the Sultanate.

Ibri Sohar-3 includes two natural gas-fired combined cycle power plants of 1,509MW and 1,710MW each, which will be situated in Ibri and Sohar in northern Oman.

With a 50.1% share, Mitsui is the lead investor and the managing member of the project, while ACWA Power owns 44.9% of the sharesm and DIDIC owns 5%.

Both plants will be owned and operated under a 15-year power purchase agreement with OPWP and will be connected to the main interconnected system (MIS) in Oman. 

Remarking on the contract, Paddy Padmanathan, president and CEO of ACWA Power, said: "Demand for electric power in the Sultanate is increasing at a rapid pace so these projects are essential to provide reliable and efficient power to drive economic growth and development.

"This is our fifth project in the Sultanate of Oman, and in conjunction with our consortium partners we're committed to meeting the target commissioning dates set out in the agreements.

"These projects are of particular importance to us as they represent the largest single award in the region, second only to our existing Qurayyah IPP," Padmanathan added. 

Once commercially operational in early 2019, the plants will supply approximately 30% of electricity demand in the country.  

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May 31, 2020