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GS confirms $1.3bn contract for Oman IPPs

Siemens and GS win bid for two power plants from GDF Suez led group

Siemens and GS will build two thermal power plants in Oman as part of a $1.3b deal.
Siemens and GS will build two thermal power plants in Oman as part of a $1.3b deal.

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Germany’s conglomerate Siemens and South Korea’s GS Engineering and Construction have won a US$1.3 billion contract to build two thermal power plants in Oman, both companies confirmed on Thursday.

GDF Suez, who led the consortium in charge of the projects, in June announced that Siemens and GS have been awarded with the engineering, procurement and construction contracts of the independent power plants (IPP) in Sohar and Barka.

This was confirmed by GS in a statement released on Thursday, and by a Siemens spokesperson the same day.

Siemens have also been contracted to service the plant after completion, said the spokesperson.

The Barka 3 and Sohar 2 are greenfield natural gas-fired power projects, located northwest of the capital Muscat, and be completed by April 2013.

GS will receive $630 million from the contracts, and the Export-Import Bank of Korea (KEXIM) will provide financing of $416 million for the projects, the company said in a statement.

The 750MW plants will be owned and operated and by the consortium comprising of Kahrabel GDF Suez Group, the Bahwan Engineering Group, the Public Authority for Social Insurance, and the Shikoku Electric Company and the Sojitz Corporation.

The electricity produced by each project will be sold under a 15-year Power Purchase Agreement to the Oman Power and Water Procurement Company (OPWP)


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