OPWPOPWP floats tender for advisory contracts

MUSCAT -- The state-owned Oman Power and Water Procurement CoOman Power and Water Procurement Co SAOC (OPWPOPWP) has formally initiated plans for the development of two major Independent Water and Power Projects (IWPPs) in the Sultanate a 1,000 MW coal-fired plant at Duqm in the Wusta region, and a brownfield power and water project at Al Ghubrah in Muscat Governorate.

As a first step, OPWPOPWP has floated a tender seeking advisory services linked to the development of the two IWPPs. The consortium of selected consultants will advise OPWPOPWP, which has the sole mandate to secure new power and water capacity, on various financial, technical and legal aspects covering the implementation of two projects in a competitive process. At Duqm, OPWPOPWP envisions the need for a 1,000 MW power plant along with a desalination component, the scope of which will be subject of the advisory services brief.

Significantly, in a departure from conventional natural gas-based power generation, the Duqm IWPP will be coal-fired for the first time in the Sultanate. Part of the consultants' brief is to recommend suitable 'clean' technologies for coal-based power generation. Based on their recommendations, OPWPOPWP will compile a 'strategy report' for the consideration of the Authority for Electricity Regulation, Oman, before they become part of the Request for Proposals (RfPs) in the next stage of the competitive tendering process.

Additionally, the selected consultants will also study the scope of various agreements that will underpin the Duqm project, including power and water purchase, sub-usufruct, and connection agreements. Additionally, the consortium will set out options for the supply of coal for the project, as well as outline the technical aspects of sourcing, shipping, and transportation of the coal to site.

A waterfront location for the IWPP has already been earmarked just north of the Duqm Port and Dry Dock complex. It is expected that the coal will be transported by conveyor systems from a dedicated coal berth to the site of the IWPP. Also as part of their brief, the consultants will spell out a timeframe for the implementation of the Duqm IWPP.

Significant power and water demand is forecast in the Duqm area, which is being developed into a major industrial and maritime hub. Duqm is set to host the world's second largest ship repair yard, which is currently being developed by the government in partnership with Korea's Daewoo Shipbuilding & Marine Engineering (DSME). When operational in the year 2010, the ship repair yard will be large enough to accommodate the biggest vessels in operation today. A full-fledged shipbuilding yard is also envisioned as part of the long-term development of Duqm Port.

Also planned in Duqm is a huge Industrial Area and Free Trade Zone that will house a world-scale refinery and petrochemicals complex, among a host of other downstream ventures. The area is also expected to attract sizeable industrial investments based on the Wusta region's abundant natural resources, notably oil and gas, minerals, and fisheries.

Separately, the selected consultants will also advise OPWPOPWP on the expansion and redevelopment of the Al Ghubrah Power and Desalination Plant. As part of this initiative, OPWPOPWP has mooted a new IWPP providing additional power capacity of up to 500 MW and around 25 million imperial gallons per day (MIGD) of desalination capacity. This new capacity is proposed to be available from 2011-2012 and will be established alongside Al Ghubrah's existing plant.

In tandem with the development of this new capacity, older units of the existing power and desalination plant will be scrapped and the project's overall output will be partly scaled down. The new capacity will be integrated into the assets of the state-owned Al Ghubrah Power and Desalination Company SAOC, which owns and operates the existing plant.

By Conrad Prabhu

© Oman Daily Observer 2008

 

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