16 April 2012
MUSCAT -- Phoenix Power Company will host key stakeholders today at a ceremony that will showcase the huge national significance of its 2,000 megawatts (MW) Independent Power Project (IPP), which when fully operational in 2014 will account for roughly 30 per cent of Oman's total electricity generation capacity.
The Wali of Sur, Shaikh Ali bin Ahmed al Shamsi, will join local representatives of the Majlis Addawla and Majlis Ash'shura, as well as a number of government dignitaries at the event. Also expected in attendance will be senior officials from the Authority for Electricity Regulation, Oman; Oman Power and Water Procurement Company, Public Establishment for Industrial Estates (PEIE), and a host of other government and private sector establishments.
"This event is part of our endeavour to engage with the local community, as well as provide our stakeholders with a complete overview of this strategically important national project," said David Fearon, Executive Managing Director of Phoenix Power. "As the biggest IPP to be undertaken in Oman, the Sur project will serve as a benchmark for Oman's vital power sector -- a theme that will be underscored at this public ceremony," he added in comments to the Observer.
Japanese conglomerate Marubeni Corporation, as a 50 per cent shareholder in Phoenix Power, is playing a central role in the timely execution of the mega project.
Marubeni currently oversees a global portfolio of around 8,700 MW of generation assets around the world, which is nearly twice the Sultanate's combined generation capacity of around 4,000 MW expected in 2014.
Along with its partners in Phoenix Power -- Chubu Electric Power Co, Inc (30 per cent), Qatar Electricity & Water Co, QSC (15 per cent) and Multitech LLC (5 per cent) -- Marubeni is committed to bringing its global expertise in the delivery of a world-class power project to Oman, said Tomoki Nishino, Chief Financial Officer of Phoenix Power.
Nearly 80 per cent of the capital cost of the project will be met through project finance committed by a consortium of international lenders comprising Japanese, British and German banks.
Work on the giant scheme is progressing at a rapid pace on a site located between the facilities of Oman LNG and Oman-India Fertilizer Company (Omifco) in Sur. An army of around 1,500 workers is currently at site, building a state-of-the-art Combined Cycle Gas Turbine gas-fired plant that will cater to a significant chunk of electricity demand covered by the Main Interconnected System (MIS).
At the peak of construction later this summer, the size of the workforce at site will climb to around 4,000, according to Jon Easter,
Construction Officer of Phoenix Power. "We are on track to installing the required 400 MW of capacity under our Early Power commitments by April 1, 2013. The first gas turbines, manufactured by Siemens, will be delivered at site by June, and will be progressively taken through the commissioning phases. In all, five gas turbines each of around 400 MW will be installed and commissioned in the run-up to the Commercial Operation Date of April 1, 2014," said Fearon.
In parallel with the construction of the plant, EPC contractor Daewoo E&C is also building a seawater intake system that will pump massive amounts of water for cooling purposes. A temporary jetty is also being built to facilitate the delivery of the gas turbines, steam turbines and other project equipment directly to site.
Underlining its commitment to HSE guidelines, Phoenix and its EPC contractor have already logged 1.6 million man-hours with a Lost Time Incident (LTI) in the execution of the project so far. Further, in a demonstration of its concern for the marine environment, the company commissioned international experts to survey and relocate rare coral from the seabed adjoining its project site. That exercise, involving the safe transplantation of thousands of specimens of coral, has been described as one of the first by Oman's private sector.
Given the national significance of the IPP, Phoenix Power is implementing a mobilisation plan that includes Omani national positions and plan in the longer term through the provision of world-class training of selected staffs. Lead investor Marubeni Corporation and its fellow partners in the project have also affirmed their commitment to supporting Omanisation.
Importantly, the Sur IPP pays testimony to burgeoning Omani-Japanese economic ties, as well as to the fortitude of its Japanese promoters who persevered with their bid for the prestigious project at a time when Japan was suffering the horrific aftermath of the Fukushima earthquake and tsunami last year.
"It was on March 7, 2011 -- four days before that tragedy -- that the Marubeni-led consortium submitted its bid for the Sur IPP. Given the huge blow it dealt to the Japanese economy, no one believed that any of the Japanese bidders would persevere with their bids. Yet, we not only won the mandate, but also went on to achieve financial close at the height of the euro zone crisis. Thus, the name 'Phoenix' to symbolise our triumphant emergence in the face of extremely testing times. And like the legendary bird itself, implementation of the project is progressing swiftly," explained Nishino.
"The IPP will also serve to commemorate 40 years of diplomatic relations between Oman and Japan, as well as affirm the significant contribution of Japanese firms to the Sultanate's economic development. 80 per cent of the equity in Phoenix Power is owned by Japanese companies.
Japanese based lenders are also providing a significant portion of the senior loan extended to the company. Steam turbines for the plant will be manufactured by Fuji Electric, also from Japan," Nishino added.
MUSCAT -- Phoenix Power Company will host key stakeholders today at a ceremony that will showcase the huge national significance of its 2,000 megawatts (MW) Independent Power Project (IPP), which when fully operational in 2014 will account for roughly 30 per cent of Oman's total electricity generation capacity.
The Wali of Sur, Shaikh Ali bin Ahmed al Shamsi, will join local representatives of the Majlis Addawla and Majlis Ash'shura, as well as a number of government dignitaries at the event. Also expected in attendance will be senior officials from the Authority for Electricity Regulation, Oman; Oman Power and Water Procurement Company, Public Establishment for Industrial Estates (PEIE), and a host of other government and private sector establishments.
"This event is part of our endeavour to engage with the local community, as well as provide our stakeholders with a complete overview of this strategically important national project," said David Fearon, Executive Managing Director of Phoenix Power. "As the biggest IPP to be undertaken in Oman, the Sur project will serve as a benchmark for Oman's vital power sector -- a theme that will be underscored at this public ceremony," he added in comments to the Observer.
Japanese conglomerate Marubeni Corporation, as a 50 per cent shareholder in Phoenix Power, is playing a central role in the timely execution of the mega project.
Marubeni currently oversees a global portfolio of around 8,700 MW of generation assets around the world, which is nearly twice the Sultanate's combined generation capacity of around 4,000 MW expected in 2014.
Along with its partners in Phoenix Power -- Chubu Electric Power Co, Inc (30 per cent), Qatar Electricity & Water Co, QSC (15 per cent) and Multitech LLC (5 per cent) -- Marubeni is committed to bringing its global expertise in the delivery of a world-class power project to Oman, said Tomoki Nishino, Chief Financial Officer of Phoenix Power.
Nearly 80 per cent of the capital cost of the project will be met through project finance committed by a consortium of international lenders comprising Japanese, British and German banks.
Work on the giant scheme is progressing at a rapid pace on a site located between the facilities of Oman LNG and Oman-India Fertilizer Company (Omifco) in Sur. An army of around 1,500 workers is currently at site, building a state-of-the-art Combined Cycle Gas Turbine gas-fired plant that will cater to a significant chunk of electricity demand covered by the Main Interconnected System (MIS).
At the peak of construction later this summer, the size of the workforce at site will climb to around 4,000, according to Jon Easter,
Construction Officer of Phoenix Power. "We are on track to installing the required 400 MW of capacity under our Early Power commitments by April 1, 2013. The first gas turbines, manufactured by Siemens, will be delivered at site by June, and will be progressively taken through the commissioning phases. In all, five gas turbines each of around 400 MW will be installed and commissioned in the run-up to the Commercial Operation Date of April 1, 2014," said Fearon.
In parallel with the construction of the plant, EPC contractor Daewoo E&C is also building a seawater intake system that will pump massive amounts of water for cooling purposes. A temporary jetty is also being built to facilitate the delivery of the gas turbines, steam turbines and other project equipment directly to site.
Underlining its commitment to HSE guidelines, Phoenix and its EPC contractor have already logged 1.6 million man-hours with a Lost Time Incident (LTI) in the execution of the project so far. Further, in a demonstration of its concern for the marine environment, the company commissioned international experts to survey and relocate rare coral from the seabed adjoining its project site. That exercise, involving the safe transplantation of thousands of specimens of coral, has been described as one of the first by Oman's private sector.
Given the national significance of the IPP, Phoenix Power is implementing a mobilisation plan that includes Omani national positions and plan in the longer term through the provision of world-class training of selected staffs. Lead investor Marubeni Corporation and its fellow partners in the project have also affirmed their commitment to supporting Omanisation.
Importantly, the Sur IPP pays testimony to burgeoning Omani-Japanese economic ties, as well as to the fortitude of its Japanese promoters who persevered with their bid for the prestigious project at a time when Japan was suffering the horrific aftermath of the Fukushima earthquake and tsunami last year.
"It was on March 7, 2011 -- four days before that tragedy -- that the Marubeni-led consortium submitted its bid for the Sur IPP. Given the huge blow it dealt to the Japanese economy, no one believed that any of the Japanese bidders would persevere with their bids. Yet, we not only won the mandate, but also went on to achieve financial close at the height of the euro zone crisis. Thus, the name 'Phoenix' to symbolise our triumphant emergence in the face of extremely testing times. And like the legendary bird itself, implementation of the project is progressing swiftly," explained Nishino.
"The IPP will also serve to commemorate 40 years of diplomatic relations between Oman and Japan, as well as affirm the significant contribution of Japanese firms to the Sultanate's economic development. 80 per cent of the equity in Phoenix Power is owned by Japanese companies.
Japanese based lenders are also providing a significant portion of the senior loan extended to the company. Steam turbines for the plant will be manufactured by Fuji Electric, also from Japan," Nishino added.
© Oman Daily Observer 2012
