Three IPOs are expected in the power sector by 2013 as companies developing the projects hit their four-year IPO deadlines, according to Oman Power and Water Procurement Company (OPWP).
Speaking at the Oman Investment Forum, OPWP CEO Bob Whitelaw revealed that the Sur IPP development company, Phoenix Power, will have its IPO in April, while Barka-3 developers Al Suwaidi Power Company and Al Batinah Power Company, the developers of Sohar-2, will run their IPOs in April 2013. All three companies will float 35 per cent of their shares, as per Authority for Electricity Regulation (AER) conditions.
Speaking on the sidelines of the event, Whitelaw said that if the IPOs are unsuccessful, the government can step in to buy the stake and re-sell it when market conditions improve. "From the time we sign the contract, we have a four-year period before the obligation to issue the IPO. Once you hit that timetable you must issue the IPO and then there is an obligation for three subsequent years if it is unsuccessful.
"If it is still not successful after the three years the government, through the Electricity Holding Company, can buy up the unsold shares with a view to waiting until market conditions are right." Whitelaw also outlined plans for independent water projects in Suwaiq and Quriyat as well as a power project at Duqm, which could still be extended to include an independent water project component. With a planned capacity of 50mn imperial gallons per day (MIGD), bids for the Suwaiq project are expected by the first quarter of 2014.
Bids for the 40MIGD Quriyat plant are anticipated by the first quarter of 2014. Studies are ongoing for the Duqm project, with a projected capacity of up to 200MW if it is intended to serve just the Duqm area, and up to 1,000MW if it is to be hooked up to the Main Interconnected System.
© Muscat Daily 2011
