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Muscat, Oman 25 May 2015
ACWA Power, Riyadh based global leading water and power developer, owner and operator across 10 countries, signed an agreement to establish Salalah Independent Power Plant (Phase 2) which will have an installed capacity of 445 MW. The agreement's signing ceremony held on Monday evening in Muscat and attended by His Excellency; Shaikh Saif bin Mohammed al Shabibi, Minister of Housing, also included ACWA Power's acquisition of the existing Dhofar Power Plant, which has an output of 273MW.
The agreements were signed by Mohammed Abunayyan, Chairman ACWA Power, Engineer Ahmed Bin Saleh Al Jahdhami, CEO of OPWP, Tariq Abdulhafidh Al Ujaili, Vice Chairman, Dhofar International Development and Investment Holding Co and Kazuhiro Hashimura, General Manager of Mitsui & Co., Ltd.
The new natural gas-fired combined cycle power plant - estimated at 2.32 Billion Saudi Riyals ($620 Million USD) - will have an installed capacity of 445 MW and will be connected to the existing Salalah grid. According to the agreement, OPWP will have the right to buy the generated electricity over a period of 15 years. The plant is planned to be commercially operated by beginning of 2018.
Mohammed Abunayyan, Chairman ACWA Power, said "We are honored with the trust bestowed upon us by Sultanate Oman's Government to execute the additional expansion projects of Baraka 1 desalination plant. Our agreement today reflects the solid base ACWA Power has in Oman, one of our primary markets. The maturity of the Omani government's privatization program and welcoming environment for investors, are highly applauded as their efforts drive towards liberalizing the electricity sector through its plans for transition to an open merchant market in a smooth and planned manner."
From his end, Thamer Al Sharhan, Managing Director ACWA Power said: "Salalah 2 IPP is another success and important milestone in ACWA Power's portfolio that reflects the company's commitment in developing the Omani power and water sector, and provide job opportunities, training and developing Omani youth and workforce. ACWA Power is proud to have achieved 80% Omanization in its Baraka 1 power station since the acquisition happened in 2010 and we are keen with our partners to succeed in adding value to the Sultanate socio-economic through our projects."
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About ACWA Power:
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with operations in 10 countries in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power's portfolio, with an investment value in excess of USD 26 billion, can generate 16.9 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.
ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).
ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.
ACWA Power strives to achieve success by adhering to the values of Diversity, Rigor, Ingenuity, Fairness and Integrity in operating its business.
© Press Release 2015
