Tuesday 17 / December / 2024
Marafiq, a joint venture owned by OQ - a subsidiary of Oman Investment Authority, shared its substantial impact to the local economy (ICV) through a series of managed projects within the Special Economic Zone at Duqm (SEZAD). Eng. Abdullah Mohammed al Hashimi, the Managing Director of the Company, highlighted in his visual presentation that as of the conclusion of 2023,
Marafiq's direct contribution to the local economy (ICV) exceeded US $100 million. Emphasizing the Company's ongoing efforts, he stated that Marafiq is consistently striving to enhance its value add to ICV by actively sourcing for Omani products, awarding numerous contracts to local businesses, and prioritizing small and medium enterprises (SME,s) in its tender processes.
The presentation was attended by H.E. Dr. Mansour bin Talib Al Hinai, Chairman of the Authority for Public Services Regulation (APSR), H.E. Halima bint Rashid Al Zari, Chairperson of SMEs Development Authority, H.E. Engineer Bader bin Salim bin Marhoon Al Mamari, Secretary General of the Tender Board. The attendees toured the projects undertaken by the Company within the (SEZAD) to gain insights into Marafiq's role in fostering entrepreneurial initiatives, backing small and medium-sized enterprises, and delivering highly efficient services in the areasof electricity generation and desalinated water supply, plus drinking water supply to the Zone.
Marafiq’s in Country Value (ICV)
Eng. Eng. Abdullah Mohammed al Hashimi explained that Marafiq has successfully enhanced ICV by around US $55 million through goods manufactured in Oman; also allocating US $36 million in contracts to small and medium-sized enterprises via the Duqm Integrated Power and Water Plant (DIPWP), and contributed up to US $10 million in value-added projects in the drinking water sector.
Marafiq manages and operates the Duqm Integrated Power and Water Plant (DIPWP), specifically developed for the OQ8 Duqm Refinery and Oil Terminal Facilities (OTTCO) in Ras Markaz. DIPWP boasts an installed capacity of 326 MW of Power and 36 thousand cubic meters of Desalinated Water per day. Additionally, Marafiq manages a 80MW gas turbine power plant to support the electricity requirements of the Duqm Special Economic Zone grid.
Marafiq also manages the potable water sector within the Special Economic Zone at Duqm under the license granted by the Authority for Public Services Regulation (APSR). The Authority actively oversees the Company's performance, conducts audits of its operations, and monitors efficiency in project implementation and operational expenditures. On a regular basis, Marafiq Company submits reports to the Authority detailing its Operations, plans and projects executed to enhance the water sector's performance, and adherance to the governments price control mechanism.
A Visionary Approach
During the meeting, Marafiq's approach to overseeing the electricity and water sectors within the Special Economic Zone at Duqm, along with the Company's role in fostering an conducive environment for investment growth in the area, was discussed. Engineer Abdullah Mohammed al Hashimi explained that Marafiq has developed an ambitious strategy aimed at advancing the electricity and drinking water sectors in the SEZAD. He emphasized that this strategy has already effectively provided electricity and drinking water to projects operating within the zone, as well as to residential, commercial, and tourist developments with heightened efficiency and reduced losses..
Furthermore, it has played a vital role in curbing enviromental emissions, reducing electricity production costs, and reducing government subsidies required for the electricity generation sector in the zone. Marafiq has already successfully achieved a reduction in environmental emissions, equivalent to removing 20 thousand vehicles from the road.
During the meeting attended by Marafiq's executive management, Al Hashimi emphasized the significant role played as a key proponent of economic development within the SEZAD via its endeavors in the Power and Water sectors. He also highlighted Marafiq's operationsin supplying powerand desalinated water to the OQ8 Duqm Refinery, as well as delivering Power to the OOTCOOil Storage Terminal in Ras Markaz via a new 80KM High Voltage transmission linebetween Duqm and Ras Markaz.
Marafiq strategy streamlines requirements for companies within the SEZAD by offering electricity, Desalinatedand Potable water, and drinking water services; on a competitive and dedicated basis. This allows companies in the zone to outsource and focus on their core business activities. He highlighted in this context that Marafiq has already successfully connected the Vulcan Green Steel Project to the water network, to support its project construction phase.
Expanding Drinking Water Production Capacity
H.E. Dr. Mansour bin Talib Al Hinai, Chairman of ASPR, inspected several potable and drinking water network expansion initiatives executed by Marafiq in the SEZAD. He received an overview of the Company's efforts in linking residential areas, industrial complexes, and commercial and tourist properties to an efficient and reliable water network
Eng. Abdullah Mohammed al Hashimi further explained that Marafiq has effectively doubled the production capacity of drinking water in recent years, achieving a daily output of 9,000 cubic meters and expanding storage capacity to 22 thousand cubic meters. The company has undertaken various expansions to the network as part of its initiative to connect various diverse investment projects, industrial facilities, and commercial and residential properties to its managed water network.
Currently, the primary water transmission lines in the zone extend over 46 kilometers, with the water distribution network pipes totaling 131 kilometers in length. Additionally, the number of customers to the water network has reached approximately 2800 by the end of 2023
Al Hashimi also highlighted that Marafiq's dedication to meeting numerous international standards in the administration of the water network within the Special Economic Zone at Duqm has resulted in a notable reduction of network losses to 9.1% which “stands among the lowest globally. As a recognition of this achievement, Marafiq was honored with the Integrated Utilities Company of the Year Award at the 2023 Sustainability Innovation Awards organized by the World Economic News Network (BNC Publishing), acknowledging the excellence in innovative and sustainable projects in the Middle Eastern region”.
Supporting the SMEs
During the session, Her Excellency Halima bint Rashid Al Zari, Chairperson of the SMEs Development Authority, delivered a presentation outlining the Authority's vision and its role in fostering the development of the SMEs sector.
Engineer Abdullah Al Hashimi remarked, "Marafiq has established a comprehensive database encompassing various SME,s whose activities align with the Company's needs. This initiative aims to support hem in priority tenders, particularly those within the SEZAD.
“Marafiq is dedicated to maximizing the benefits for SME,s in its projects, promoting the entrepreneurial sector, and addressing challenges faced by entrepreneurs."
Enhancing the Effectiveness of Public Expenditure
H. E Eng. Bader bin Salim bin Marhoon Al Mamari, the Secretary General of the Tender Board, provided insights into the crucial role played by the Board in promoting the efficiency of government spending on projects. He highlighted that the General Secretariat of the Tender Board is actively working towards establishing a comprehensive and interconnected system that not only achieves ICV, but also enhances the efficiency of government spending, encompassing both government projects and those carried out by subsidiaries of the Omani Investment Authority.
On his part, Engineer Abdullah Al Hashimi explained that Marafiq fully aligns with the vision of the General Secretariat of the Tender Board and its objectives. He emphasized that increased collaboration between the two entities will be evident in the future.
Social Responsibility Initiatives
Regarding Marafiq commitment to social responsibility, Eng. Abdullah Al Hashimi explained that the Company has executed numerous programs in collaboration with government entities such as the Ministry of Education and higher education institutions. He further stated that Marafiq sponsored a training initiative conducted in the United Kingdom last year for a group of students from schools in Al Wusta Governorate, in partnership with the German University of Technology in Oman (GUtech).
The program, spanning several weeks, aimed to elevate students' proficiency in English and life skills, foster cultural and scientific exchange, and prepare them for university life and future employment opportunities.
Marafiq also assisted in setting up pre-first-grade classrooms to ready young students for subsequent school levels in SEZAD.
