Nama announces privatisation of companies

Business Monday 08/October/2018 15:05 PM
By: Times News Service
Nama announces privatisation of companies

Muscat: Nama Holding, a government-owned company, has announced the launch of the privatisation programme for Nama Group's electricity transmission and distribution companies.
The announcement was made through the inauguration of the first stage of privatisation through a press conference held by Nama Holding in London, which was chaired by Sheikh Dr Mansoor bin Taleb Al Hinai, Vice President, Distribution and Supply at Nama Group.
During the press conference, Al Hinai announced the partial privatisation of the transmission company and one of the distribution companies through an international strategic partner.
He announced the sale of up to 49 per cent of Nama Holding shares in the Oman Electricity Transmission Company (OETC), and the sale of up to 70 per cent of Nama Holding shares in its distribution and supply companies respectively: Muscat Electricity Distribution Company (MEDC), Majan Electricity Distribution Company (MJEC), Mazoon Electricity Distribution Company (MZEC), and Dhofar Power Company (DPC).
He added that OETC and MEDC, currently being considered for privatisation, and the other three distribution and supply companies listed above currently operate as fully-owned subsidiaries of Nama Holding.
Saud bin Nasser Al Shukaili, Secretary General of Taxation and Chairperson of the privatisation steering committee, said: “The government, through the privatisation programme, aims to tap private sector investment and promote private sector participation in the nation building process."
"It also aims to attract and retain foreign direct investment (FDI) in the Sultanate to benefit from its technical and administrative expertise and modern technology, which will reflect in the improvement of customer service, resource utilisation and reduce cost per unit of electricity supplied, over time,” he added.
Eng. Omar bin Khalfan Al Wahaibi, CEO of Nama Group, said: "The privatisation of electricity companies is part of Nama Group’s strategy to attract international investments. The investment with a strategic partner will enhance the role of the electricity sector in Oman's economy and will promote the sector's position in the global market. The privatised companies will benefit from the global management expertise that will contribute to raising the efficiency of the service provided to customers.”
Al Hinai announced that Nama Holding now intends to invite eligible entities, either individually or in consortia, to express interest to participate in the partial divestment of OETC and MEDC through the Nama Holding website.