MUSCAT -- A greenfield inland site in Ibri in Dhahirah Governorate as well as a coastal site within Sohar Industrial Port Area are being considered by the Omani government for the establishment of a pair of new Independent Power Projects (IPPs) of a combined electricity generation capacity of 2,650 MW.
The exact location of the projects will be confirmed during the next phase of a competitive process for the procurement of what is billed as the single largest increase in Oman's power generation capacity to date.
The procurement of this new capacity is being overseen by Oman Power and Water Procurement Company (OPWP), a wholly owned subsidiary of the Electricity Holding Company (EHC).
Last month, the state-owned procurer issued a Request for Qualifications (RfQ) inviting interested developers to submit their credentials as an expression of their desire to participate in a competitive tender for the IPPs. Submissions are due in by August 3, 2014.
The successful bidder will secure a licence to develop, finance, design, engineer, construct, own, operate and maintain a pair of IPPs planned at two different locations with the Main Interconnected System (MIS), the electricity grid that serves much of the northern half of Oman.
"The split of power capacities between the two sites and the choice of technologies to be used for delivering the required capacities will be determined by the bidders subject to the constraints that will be identified in the Request for Proposals (RFP). It is expected that these constraints will include a requirement that Early Power capacity is to be provided at the Ibri site only," said OPWP in its advisory to interested developers.
"Bidders will be encouraged to develop the (IPPs) on a sound technical basis using proven technology with high efficiency, flexibility of operation and an environmentally compliant configuration, as well as safe and reliable processes and operating procedures. Furthermore, the capacity and plant layout at each site will need to be optimised to fit within the constraints of the available sites," the procurer further added.
Natural gas as primary fuel for the IPPs will be supplied by the Ministry of Oil and Gas (MOG), said OPWP. Significantly, although two Independent Power Projects (IPPs) are envisioned as a result of this competitive procurement process, only one successful bidder will be selected to implement both power plants, according to the OPWP.
Nevertheless, the successful developer will be required to establish separate special purpose project companies in accordance with the Commercial Companies Law. Each of the project companies will be separately and independently financed, as well as subject to separate licensing arrangements.
With power demand growing annually at the rate of around 9 per cent, OPWP is keen for the new capacity to be fully commissioned and brought into operation by April 1, 2018. However, around 700MW of early power capacity is required to be made available before April 1, 2017.
To assist in the procurement of the two IPPs, OPWP has retained the services of leading UK based advisory and consulting firm Project Financing Solutions Limited (as Financial Advisors); well-known international engineering consultancy Fichtner (as Technical Advisors); and global law firm DLA Piper (as Legal Advisors). (OEPPA Business Development Dept)
© Oman Daily Observer 2014
