Muscat: A process to appoint an advisor to explore the potential of divesting a minority stake in Muscat Electricity Distribution Company (MEDC) was initiated by Nama Holding (previously known as Electricity Holding Company (EHC).
Muscat Electricity Distribution Company is a subsidiary of Nama Holding and the divestment is in line with the privatisation policies of the Government of Oman, according to a press release.
Nama Holding is the holding company of a government-owned group of companies engaged in the generation, procurement, transmission, distribution and supply of electricity in Oman.
Earlier this year, Nama Holding concluded a study on the privatisation of MEDC and submitted its recommendations to the Government, represented by the Ministry of Finance and the Public Authority for Electricity and Water. The report included an overview of the precedence and experiences of various countries to assess and evaluate the potential options for privatisation, and a technical, financial and legal due diligence.
The privatisation of MEDC as a transaction is aimed at achieving the Government vision of overall enhancement of quality and efficiency of service being offered to public. This will be achieved through a privatisation process that will strengthen the Omani human capital within the organisation and facilitate sharing of the ownership of MEDC across society, while strengthening and sustaining the continued development of capital market in Oman.
MEDC is a joint stock Omani company, which was formed after the restructuring of the electricity and related water sector under the Sector Law promulgated by Royal Decree in 2004. MEDC is licensed by Authority for Electricity Regulation (AER) for the distribution and supply of electricity in Muscat Governorate.