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Wed 18 May 2016 01:47 PM

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Saudi's ACWA wins deal for major Oman power project

ACWA Power is part of consortium picked by Oman Power and Water Procurement Co to develop natural gas-fired plants

Saudi's ACWA wins deal for major Oman power project

Oman Power and Water Procurement Company has announced that a consortium including Saudi-based ACWA Power has been awarded the 3,219MW Ibri Sohar-3 power generation project, which is the largest single tendered independent power project in the sultanate.

The consortium, which is led by Mitsui & Co Ltd, and also includes Dhofar International Development and Investment Holding Co, will develop two natural gas-fired combined cycle power plants of 1,509MW and 1,710MW each.

Once commercially operational in early 2019, the plants will supply approximately 30 percent of electricity demand in Oman.

Mitsui is the lead investor and the managing member of the project, owning 50.1 percent of the project, with ACWA Power having a further 44.9 percent and DIDIC having 5 percent, a statement said.

Both plants will be owned and operated under a 15-year power purchase agreement with OPWP and will be connected to the main grid.

Paddy Padmanathan, president and CEO of ACWA Power, said: "Demand for electric power in the sultanate is increasing at a rapid pace so these projects are essential to provide reliable and efficient power to drive economic growth and development.

"This is our fifth project in the sultanate of Oman, and in conjunction with our consortium partners we're committed to meeting the target commissioning dates set out in the agreements."

ACWA Power has operations in 12 countries across three continents, including Oman, Saudi Arabia, the UAE, South Africa, Egypt, Morocco, Jordan, Mozambique, Turkey and Vietnam. Last year saw the company close project financing of eight IPP projects with a total capacity of 1,650MW, including a total of 770MW for renewable energy projects at a total project cost of $5 billion.

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