Sohar Power to bid on Oman's 2022 energy procurement programme
Utilities operator will seek shareholder approval to place "final binding bid" for OPWP's Power 2022 Procurement Process
Electricity and desalination plant operator Sohar Power will soon finalise its bid to work on Oman Power and Water Procurement Company’s (OPWP) energy supply scheme.
The company will meet on 26 February, 2019 to seek shareholder support to place a “final binding bid” for OPWP’s Power 2022 Procurement Process, which aims to secure new electricity capacity and supply after 2022.
Sohar Power confirmed its intention to bid in a filing on Muscat Securities Market on 10 February.
In a separate filing issued on the same day, Sohar said it had been pre-qualified for its power-only offer, but not for its combined power and water bid.
“OPWP informed bidders on 7 February, 2019, of its prequalification status and notified the company [that] it has prequalified for its power-only offer, but did not prequalify for its power and water offer,” the business said.
Failure to secure prequalification for a combined bid means Sohar Power “will not be able to extend the operations of its desalination plant” beyond its current power and water purchase agreement, which expires in March 2022.
This has sparked what Sohar Power called an “impairment review” of the desalination plant, which will lead to an impairment loss of $48.3m (OMR18.6m). This will be recorded in its full-year financial results for 2018.
It is unclear which other companies have been prequalified for Power 2022 Procurement Process.
New York-based Nera Economic Consulting has already been picked to advise OPWP and financially manage the procurement process. CMS Cameron McKenna Nabarro Olswang is providing legal advice, while Atkins is the technical advisor.