OPWP seeks working capital facility from local banks

28/07/2015 08:52 AST

Oman Power and Water procurement Company (OPWP) has initiated steps to raise its working capital facility. The company is responsible for the procurement of new electricity generating and water desalination capacity in the Sultanate. "OPWP is intending to obtain working capital facility from reputed local banks", the company, which is a member of the Nama Group, said in an announcement. OPWP is the single buyer of power and water for all independent power projects (IPPs) and independent water and power projects (IWPPs) within Oman.

In the first quarter of this year, Oman designated the Sohar and Barka IWP projects as 'special projects' to enable ease in procurement under Sultanate's laws The special designation allows for water desalination projects that may fall outside the scope of the Sector Law, to be procured by Oman Power and Water Procurement Company (OPWP). According to Ahmed al Jahdhami, OPWP CEO, the 445 MW Salalah 2 IPP will start operations in the first quarter of 2018 while the 120 MW Musandam IPP will come on stream in the last quarter of 2016.

While the Barka IWP is sized at 281,000 cubic metres per day of desalination capacity, the Sohar IWP will have a capacity of 250,000 cubic metres per day.

Ibri and Sohar IPPs, the recently tendered projects with a total capacity of 3,200 MW, are expected to start operations in 2018 and 2019 respectively, he said.

It was a couple of months back that Omar al Wahaibi, CEO of Nama Group announced that an investments of more than RO 2 billion will be made in the power sector in Oman over the course of five years to develop the network and cater to the needs of the growing economy. "We have initiated an effective capital investment programme to further enhance our existing network, in addition to developing new networks to cater to the economic development of the country," he said on the occasion of the Group's first annual performance press conference. Apart from Oman Power and Water Procurement Company, other subsidiaries of the Group include

|Al Ghubrah Power and Desalination Company, Majan Electricity Company, Mazoon Electricity Company, Oman Electricity Transmission Company, Rural Areas Electricity Company, Wadi Al Jizzi Power Company, Dhofar Power Company and Utilities Centre for Competency Development.

OPWP recently floated a tender inviting bids from consultancies for a study to identify the best seawater intake and outfall location for a proposed independent water project. The new project, which is at an early planning stage, is to provide more potable water in the country's northern region where demand is projected to grow by 6 per cent a year over the next seven years.

Last year the OPWP issued a seven-year forecasts for average annual growth at 3 to 5 per cent.

A combination of population growth and industrial development, including tourism projects, is cited as a major reason for the growth in demand for potable water.

Oman Daily Observer