Muscat: Several agreements to build Ibri and Sohar-3 independent power plants (IPP) will be signed by Oman Power and Water Procurement Company (OPWP), the sole procurer of all new power generation and water desalination capacity in the Sultanate, with a consortium of Japan’s Mitsui & Co., ACWA Power, and Dhofar International Development and Investment Holding Co (DIDIC). The signing ceremony will held at Al Bustan Palace Muscat this Sunday, said a company release.
The project,which consists of two newnatural gas-fired combined cycle power plants,is the largest power procurement in the Sultanate with a total installed capacity of 3,219 megawatt located at Ibri, and Sohar Industrial Port in northern Oman.
Under the deal, the consortium will build, own and operate both plants and sell power to OPWP under a 15-year power purchase agreementat a cost worth over OMR885 million.
The mega power plants will supply approximately 30 per cent of the electricity that will be consumed in the Muscat area, once commercial operations are underway, according to an earlier release from Mitsui & Co.
Mitsui & Co., Ltd. as the managing member will hold 50.1 per cent, ACWAPower will hold 45 per cent stake in the project, which is due to begin operations by the first quarter of2019. DIDIC will hold the remaining 5 per cent ownership in the new firm.
According to an earlier statement,
Mitsui will operate the plants and sell power under a 15-year agreement with Oman Power and Water Procurement Company.
These power generation projects mark the further involvement of Mitsui in developing one of the largest power plants in the Middle East region, together with key downstream infrastructure in Oman, after being awarded the Salalah-2 power project in March 2015, and the Liwa Plastic Industries Complex project in December 2015.
Demand for electric power in Oman is increasing rapidly because of economic growth driven by the oil and gas sector. Mitsui will help meet that demand by constructing two natural gas-fired combined cycle power plants.
These power generation projects represent one of the primary focuses of Mitsui's infrastructure business, and Mitsui will continue to strive to win contracts for quality projects in this area.