22 May 2012
MUSCAT -- Six consultancy firms are bidding for Oman Power and Water Procurement Company's (OPWP) contract to provide Financial Advisory and Commercial Services linked to the procurement of a new Independent Water and Power Project (IWPP) in Dhofar Governorate.

Requests for Proposals (RfPs) submitted by the six contenders -- all reputable international companies -- were opened yesterday at the offices of OPWP, which has the sole mandate under the sector law to oversee the procurement of all new power generation and related water desalination capacity.

A number of leading international players are also lining up to bid for a pair of similar mandates to provide Technical and Legal Advisory Services to the state-owned offtaker in connection with the procurement of the project. RfPs are due in by June 16, 2012.

OPWP plans to complete its appointment of an advisory team -- consisting of a Financial and Commercial Services Adviser, Technical Adviser, and Legal Adviser -- by June-end. The next immediate goal for the offtaker is to have the project tender documents ready for submission to the Tender Board before the end of this year.

Dubbed Salalah IWPP2, the proposed scheme will help address burgeoning electricity and potable water demand in Dhofar Governorate, fuelled in major investments in the infrastructure, tourism and residential sectors.

Peak power demand in the Salalah System is projected to grow by 10 per cent annually from 348 MW in 2011 to 690 MW in 2018, says OPWP. In the low-case scenario, demand growth is expected to be sustained at 7 per cent, reaching 571 MW by 2018. But the high-case scenario considers more rapid industrialisation in Salalah, with peak demand projected to jump 17 per cent annually to 1,041 MW in 2018.

Water demand in Salalah is projected to grow at the rate of 6 per cent annually, with peak demand expected to increase from 62,000 m3/day in 2011 to 95,000 m3/day in 2018. The bulk of this demand will be met by the newly commissioned Salalah IWPP-1, which will yield 68,190 m3/day (15 MIGD) starting from 2012.

To help meet projected demand growth, OPWP is looking at a gas-based power generation facility of a capacity of around 250 MW co-located with a seawater desalination plant of 10 million imperial gallons per day (MIGD).

The final configuration of the new project will be decided once studies aimed at arriving at an optimum capacity for the power generation and water desalination components are completed, it is learnt.
Commercial operation of the Salalah IWPP2 is slated for 2016.

© Oman Daily Observer 2012