27 May 2015
Muscat: Oman Power and Water Procurement (OPWP) Company signed on Monday a number of agreements to establish Salalah Independent Power Plant (Phase 2) which will have an installed capacity of 445 MW. The agreements include the acquisition of the existing Dhofar Power Plant, which has an output of 273MW.

At a cost worth over RO 240 million, the new natural gas-fired combined cycle power plant will have an installed capacity of 445 MW and will be connected to the existing Salalah grid. The plant is planned to be commercially operated by Q1, 2018.

Ahmed bin Saleh al Jahdhami, CEO of OPWP said, "This new capacity will contribute to the growing power demand to meet the needs of urban, industrial and tourism development in the governorate of Dhofar as well as enhancing the efficiency of gas consumption".

Yaqoob al kiyumi, COO, OPWP, said, the Dhofar Governorate now has the same power generation, transmission and distribution system (with separate companies) as it is in the northern parts of Oman.

He said the power situation in Dhofar is that there are enough for the reserves but not a huge surplus. In the coming years, wind power will be also connected to the grid.  Kiyumi said the RFO for the Independent Water Plant will close this year, with the project to be commissioned by Q1, 2019.

OPWP released the RFfP in April 2014. Bidders have competed in their technical and financial bids and through the evaluation and negotiation process carried out by the company, the project was awarded to the consortium consisting of Mitsui & Co, ACWA Power, and Dhofar International Development and Investment Holding Co.

Mohammed Abunayyan, Chairman ACWA Power, said that they were very excited to be part of the Salalah Independent Power Project Phase II. It will give them a significant opportunity to be part of the socioeconomic development of the Sultanate through their extensive business operation know-how and delivery of reliable electricity.

Mitsui and ACWA Power each hold a 45 per cent stake in the project while DIDIC hold the remaining 10 per cent.

The agreements were signed by Shaikh Saif bin Mohammed al Shabibi, Minister of Housing and Engineer Ahmed bin Saleh al Jahdhami, CEO of OPWP and on behalf of the consortium Kazuhiro Hashimura, General Manager of Mitsui & Co, Ltd, Mohammed Abunayyan, Chairman ACWA Power and Tariq Abdulhafidh
al Ujaili, Vice Chairman, Dhofar International Development and Investment Holding Co.

© Oman Daily Observer 2015