expat network

Mitsui consortium wins major Oman power project

Mitsui, ACWA Power & DIDIC Consortium win Salalah 2 IPP and acquires Dhofar Generating Company in Oman.

Oman Power and Water Procurement Company (OPWP) awarded the Salalah 2 Independent Power Project to a consortium of Mitsui, ACWA Power, and Dhofar International Development & Investment Holding Company (DIDIC)(together, the Consortium) and the project related agreements are expected to be executed by mid April 2015.

The Salalah 2 IPP will have a high efficiency gas fired power generation plant that can deliver 445 MW of power, and will be located in Raysut, Oman. As part of this transaction, the Consortium will also acquire Dhofar Generating Company (DGC), which currently owns and operates an existing 273 MW natural gas fired power plant. Together these two new facilities will represent a significant boost to the Dhofar power grid.

Paddy Padmanathan, President and CEO of ACWA Power stated “Salalah 2 IPP is an important milestone for ACWA Power, given the importance of Oman as a strategic market. This transaction goes a long way in demonstrating our commitment to the socio-economic development of Oman, be it in reliably delivering low cost power and / or desalinated water, or in providing jobs for Omani citizens. ACWA Power is committed in maintaining a high level of Omanization, especially at the senior level positions, in its portfolio companies in Oman.”

ACWA Power established its presence in Oman through its acquisition of Barka1 IWPP in 2010, which is currently listed on the Muscat Stock Market as ACWA Power Barka. Since its acquisition by ACWA Power, ACWA Power Barka was awarded two water desalination expansion projects.

Rajit Nanda, Chief Investment Officer at ACWA Power said, “We acknowledge the trust bestowed by OPWP upon ACWA Power in supporting Oman’s increasing demand for power and water, and we are proud to have offered a technically viable and a commercially competitive solution to provide the best value for money for OPWP on this transaction”.

ACWA Power’s portfolio companies in Oman will now be responsible to deliver over 1,100 MW of power and 193,000 m3/day of desalinated water to OPWP.

Source:  www.acwapower.com