SALALAH -- Oman and Singapore entered into a new era of bilateral trade with the official opening of RO 385 million Salalah Independent Water and Power Plant (IWVVP) in Mirbat yesterday. A joint venture between Sembcorp of Singapore and Oman Investment Corporation, the IWVVP began operations in May 2012 with a production capacity of 490 MW of power. The plant produces 75 per cent of the total energy demand in the Dhofar Governorate.
The official opening function was held under the auspices of Sayyid Mohammed bin Sultan al Busaidy, Minister of State and Governor of Dhofar, while K Shanmugam, Singapore's Minister for Foreign Affairs and Minister for Law, was the Guest of Honour. In his comments to the Observer, Shanmugam said the trade relations between Oman and Singapore were based on logic and mutual interests. "We are going to sign two major agreements, which show that our engagement with the country is serious and long-term."
"The first agreement is in the education sector, while the second one is between Takamul and Sembcorp under which 1,700 square metres of land has to be redeveloped in Duqum. This is an important and positive development for both the countries in terms of investment and employment generation," he said. The Sembcorp's IWVVP, according to Shanmugam, is a reflection that big investments from Singapore are coming to Oman and some "Omani companies have also shown interest in investment in Singapore."
The facility consists of a gas-fired power plant with a total gross capacity of 490 mega watts (net capacity of 445 megawatts) and a seawater desalination plant with a total water production capacity of 15 million imperial gallons (69,000 cubic metres) per day. It will provide power and water under a 15-year power and water purchase agreement with the Oman Power and Water Procurement Company, which is wholly owned by the Government of Oman.
Today, the Salalah IWVVP supplies about 75 per cent of the total power demand in Dhofar. The plant is Sembcorp's first facility in Oman. The project was secured in 2009, following a competitive bidding process involving global utilities players. Besides the Salalah IWVVP, Sembcorp also owns, operates and maintains the Fujairah 1 Independent Water and Power Plant in the UAE since 2006.
Shanmugam said: "The official opening marks the accomplishment of an important milestone and the beginning of another fruitful chapter in this long-term partnership between Sembcorp and its Omani partners. Sembcorp's project, which represents the single largest stake by a Singapore company in Oman, strengthens the close bilateral ties between Oman and Singapore. We hope that this will pave the way for future collaboration between Singapore and Omani companies."
Mohammed bin Abdullah al Mahrooqi, Chairman of Public Authority for Electricity and Water (PAEW), hailed the successful completion of Salalah IWVVP project and said more power projects were in the pipeline in Salalah. Addressing the gathering, Tang Kin Fei, Sembcorp's Group President and CEO, expressed happiness over the official opening of the IWPP and said: "It reaffirms our capabilities as a leading global energy and water player, with a solid track record in identifying, securing, financing and executing large scale energy and water projects."
© Oman Daily Observer 2013
