10 March 2016
MUSCAT: The Sultanate's maiden wind-powered electricity generation venture will have a strong In-Country Value (ICV) component, according to the head of the Omani partner in the joint venture implementing this landmark project.

Eng Hamed bin Salim al Magdheri, CEO of Rural Areas Electricity Company (RAECO), which along with UAE-based Masdar, is executing the keenly anticipated project, said the successful bidder is obliged to accord priority preference to indigenous Omani goods and services in the implementation of the scheme.

"In-Country Value capture is an important objective of the project and is clearly articulated in the project scope and tender documents," said Al Maghderi.

"The contractor is obligated to not only source locally manufactured goods, such as transformers, cables, building materials and so on, during the construction phase, but also train Omani technical staff who will take over operation and management of the plant over the long term," he added in comments to the Observer.

RAECO, a wholly owned subsidiary of The Electricity Holding Company (Nama Group), along with Abu Dhabi's renewable energy flagship Masdar, are 50:50 joint venture partners in the nation's first commercial scale wind farm project. Total investment is estimated at $125 million.

According to the CEO, around five international companies are in contention for an Engineering-Procurement-Construction (EPC) contract to implement the 50 megawatt (MW) project at Thamrait in Dhofar Governorate.

Commenting on the current status of the project, Al Maghderi said: "Development of the wind farm project is progressing well. Design work has been completed in line with project implementation schedules. We expect to be in a better position (to make an announcement) in the second quarter of this year. The project is targeted for completion by around the first quarter of 2018."

Selection of a competent bidder, according to the official, is a meticulous task given the highly specialised nature of wind farm development.

"There are a limited number of international players in this field. And as we are putting the accent on quality, we will be going in for a company that is prestigious and has extensive international experience in the execution of wind farm projects."

Around 16,000 homes will receive their energy needs from this ambitious initiative when it comes into operation in 2017. Austrian-based international firm ILF Consulting Engineers is providing consulting and engineering services in the establishment of the venture.

Also making headway is RAECO's trendsetting renewable energy pilot programme, the CEO said.

"The results of the photovoltaic (PV) project in Mazyounah are very encouraging, and plans are afoot for commercial-scale 3MW and 5MW systems in different locations within RAECO's jurisdiction. The tendering and construction of these projects will be announced shortly. Potential locations include Masirah Island, wilayat Mahout, and event Musandam Governorate," he added.

 Oman Daily Observer 2016