Oman: OPWP signs $2.3bn contract for power plants
The two new natural gas-fired combined cycle power plants will have total installed capacity of 3,219 MW
Oman Power and Water Procurement (OPWP) signed a number of agreements worth $2.3bn ($885m) to establish two Independent Power Plants (IPP) located at Ibri in the Governorate of A'Dhahirah and Sohar in the Governorate of North Al Batinah.
This represents the single largest procurement by the power sector of the Sultanate, with expected installed capacity of 3,219 MW, accounting for approximately 30% of power capacity in the main integrated system (MIS).
The two new natural gas-fired combined cycle power plants will have total installed capacity of 3,219 MW, consisting of 1,509 MW at Ibri, and 1,710 MW at Sohar-3.
Both projects will be connected to the existing MIS grid once in operation. The Ibri plant is planned to be commercially operated by Q2 of 2019, and Sohar-3 plant is planned to be in operation by Q1 of 2019.
Ahmed bin Saleh al-Jahdhami, CEO of OPWP said: “These projects will have an active role in meeting the increasing demand for electric power in light of urbanization and ambitious projects that are implemented in various sectors in the Sultanate. The projects will be constructed using the latest technologies and standards in line with the OPWP’s strategy to raise efficiency and reduce costs".
OPWP released the RfP in March 2015. Bidders have competed in their technical and financial bids, and through the evaluation 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. (DIDIC).
Yoshio Kometani, COO of Mitsui & Co., Ltd., managing member of the consortium, and Mohammed Abunayyan, chairman of ACWA Power said that they are very excited to be part of these IPP, in continuation from its partnership in Salalah Independent Power Project Phase II which is currently under construction.
Mitsui & Co., Ltd. as managing member will hold a 50.1%, ACWA Power will hold 44.9%, and DIDIC will hold the remaining 5%.