01/09/2015 08:05 AST
Two Japanese power giants and a French firm are leading three consortiums that have submitted bids for developing Oman’s biggest gas-fired power plant, coming up in two locations, with a combined generation capacity of 2,600 megawatts.
The two Japanese firms that are leading consortiums are Marubeni and Mitsui, while French firm Engie has also submitted the bid, along with its partners. The projects are planned one each in Ibri and Sohar.
The state-owned Oman Power and Water Procurement (OPWP) Co floated a request for proposal earlier, seeking potential developers to submit their bids up to August for developing the mega power plant within the main interconnected system (MIS) region, following a pre-qualification process. The bids were opened on August 30
“The proposals were opened in OPWP office on August 30 in the presence of representatives of the interested parties,” according to a tender statement on its website. The bid amounts are not made public.However, the proposed project will have a combined capital expenditure of $1.5 billion, Ahmed Al Jahdhami, chief executive officer of OPWP, said earlier.
According to earlier reports, part of the capacity will go on stream by 2017, while the full project will be ready by 2018.
The project is for meeting the growing demand for electricity, mostly driven by a surging population in the country.
Like any other IPP, the investment will be made by the winning international independent power producer. The natural gas required for the power project will be sold to the developer at a pre-determined price by the government, while the sole purchaser of power will be OPWP.
The Sultanate's population growth is a major factor that drives the demand for electricity, while industrial consumption and tourism development projects also accelerate the growth in consumption of power in the northern region.
As per the seven-year power demand projectionreleased by Oman Power and Water Procurement Company,Oman’s average annual growth in power demand within the areas of main inter-connected system is projected at 10 per cent, from 2,592 megawatt in 2013 to 5,023 megawatt in 2020.
However, peak demand growth, under the demand forecast, is expected at about 11 per cent per annum, from 4,455 megawatt in 2013 to 9,133 megawatt in 2020.
The private sector investment, mostly brought in by international power producers, in power and water projects has touched $7 billion. Presently, there are only two government-owned power plants, which will be phased out as these are old assets.
Times of Oman
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