Muscat: Privatisation of OETC will not lead to increase in electricity tariffs, said Nama Holding officials in a press conference at the company premises in Qurum on Tuesday.
They said the deal reflects confidence in Omans economy and its ability to draw large global investors. The deal will also help in expansion of electricity services. Nama Holding, the holding company of state-owned electricity network companies, signed an agreement on Sunday to sell 49 per cent shares of Oman Electricity Transmission Company (OETC) to the State Grid International Development Ltd (SGID), a wholly-owned subsidiary of the State Grid Corporation of China (SGCC).
STATE TREASURY
Nama said $1billion from the sale will be transferred to the state treasury to support the economy. Nama affirmed that the privatisation of a 49 per cent stake of OETC has been carried out in accordance with the Organisation and Privatisation Law in Electricity and Water Sector promulgated by Royal Decree No 78/2004. Besides, the deal has gone through an audit process by the State Financial and Administrative Audit Institution (SFAAI). Privatisation in the electricity sector will continue with a deal to sell 70 per cent stake of Muscat Electricity Distribution Company (MEDC) in the second half of 2020.
Nama said confirming that privatisation has nothing to do with the determination of electricity charge which is referred to the Council of Ministers. Shaikh Dr Mansoor bin Taleb al Hinai, Vice-President, Distribution and Supply of Nama, said the privatisation of transmission and distribution companies began with Al Rusayl Power Company in 2006. The privatisation of OETC was supposed to be carried out in 2008 but it was delayed due to the global financial crisis.
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