ACWA Power consortium celebrates ground breaking of Phase 2 of Salalah Independent Power Plant

Salalah, Oman - 15 October 2015: A consortium led by ACWA Power and Mitsui celebrated today the commencement of construction operations of Salalah IPP (Phase 2). The consortium signed an agreement with the Oman Power and Water Procurement Company (OPWP) on 25 May 2015 to develop Phase 2 of Salalah IPP, at a cost of 2.32 billion SAR (USD 620 million), which will have a capacity of 445MW once

  
Salalah IPP Phase 2 will cost USD 620 million and generate 445MW

The plant is scheduled to be fully operational by the beginning of 2018

The maturity of the Omani government's privatization program attracts foreign investments in one of the Sultanate's vital sectors


Salalah, Oman - 15 October 2015: A consortium led by ACWA Power and Mitsui celebrated today the commencement of construction operations of Salalah IPP (Phase 2). The consortium signed an agreement with the Oman Power and Water Procurement Company (OPWP) on 25 May 2015 to develop Phase 2 of Salalah IPP, at a cost of 2.32 billion SAR (USD 620 million), which  will have a capacity of 445MW once fully operational.  

Thamer Al Sharhan, Managing Director ACWA Power said: "Today's breaking of ground for the second phase of the Salah IPP reflects ACWA Power's commitment to providing our customers with end to end power solutions swiftly; while holding true to our focus on both efficiency and sustainability.  Salalah 2 IPP is a key milestone in ACWA Power's portfolio that reflects the company's commitment in developing the Omani power and water sector, and provides job vacancies and train and develop Omani youth and workforce. ACWA Power is proud to have achieved 80% Omanization in its Baraka 1 power station since the acquisition happened in 2010 and we are keen with our partners to succeed in adding value to the Sultanate economy through our projects."

Naif Alawiad, CEO Dhofar Generating Company, said "Oman has a reputation as a trendsetter in the region's power and water sector, having pioneered the deregulation and liberalization of the industry to make it attractive for international developers to invest in this strategically vital sector. Salalah 2 IPP is a solid proof of Oman's strident efforts to make energy production more efficient to meet the country's industrial sector and growing population's demand for energy."

The new natural gas-fired combined cycle power plant - estimated at 2.33Billion Saudi Riyals ($6.23 Million USD) - will have an installed capacity of 445 MW and will be connected to the existing Salalah grid, generating a total capacity of 718 Megawatts. According to the , the consortium will acquire of the existing Dhofar Power Plant, which has an output of 273MW. Additionally, OPWP will have the right to buy the generated electricity over a period of 15 years. The plant is planned to be commercially operated by beginning of 2018.

ACWA Power
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 12 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions.   ACWA Power's portfolio, with an investment value in excess of USD 26 billion, can generate 16.9 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.

ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).

ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.

ACWA Power strives to achieve success by adhering to the values of Diversity, Rigor, Ingenuity, Fairness and Integrity in operating its business.

www.acwapower.com

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© Press Release 2015


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