Chinese firms to conduct environment study for $406m coal-based power project

Duqm/Muscat: Two state-owned Chinese power giants – Hebei Electric Power Design and Research and Ningxia Electric Power Design Institute — are set to conduct an environmental impact assessment study for getting environment clearance from Oman government for a coal-fired power project in Duqm free zone.
Both these companies are subsidiaries of a state-owned group — Power Construction Corporation of China.
After getting all necessary clearances, the company plans to start work on the power project within six months, Lee Chee Khian, chief executive officer of Special Economic Zone Authority, Duqm, told Times of Oman, after a signing ceremony.
The power firms last week signed a land lease (sub-usufruct) agreement with Oman Wanfang, which is managing 1,172 hectares of land for developing a major China-Oman industrial zone in Duqm.
The capital expenditure of the 300-megawatt project, which will have two power trains each with 150 megawatt capacity, is estimated at $406 million, added Khian.
He said that the power would be supplied to the industries coming up within the China Oman Industrial Zone in Duqm. Since it is a newly developing industrial zone, the Chinese industries need power in Duqm for the initial two years. However, the Chinese power producers will discuss with Rural Areas Electricity Company (Raeco) to seek the possibility of selling electricity outside. But a decision will be taken at a later stage.
A feasibility conducted by Hebei Electric Design found that the project will be economical and the plan is to import coal from Indonesia.
Khian said that the finance for the project will be arranged by Hebei Electric Power Design and Research and Ningxia Electric Power Design Institute – which are specialised in design and construction of power plants. It will be a mixture of equity and debt. But he is not aware of the details of the funding programme. Ten Chinese firms have signed land lease agreements for building various projects, ranging from a methanol venture to a five-star hotel, totaling an investment of $3.06 billion.
Chinese firms have signed land lease agreements for building various projects, ranging from a methanol venture to a five-star hotel, totaling an investment of $3.06 billion.