Oman Power and Water Procurement Company SAOC (OPWP) said it recently awarded a contract for the
the largest independent power project (IPP) in Oman, the 3,219 megawatt Ibri Sohar-3 power generation project.
The project was awarded to a group led by Mitsui & Co. Ltd. that includes ACWA Power and Dhofar International Development and Investment Holding Co. SAOG (DIDIC).
Mitsui is the lead investor and will act as the managing
entity over the project, which includes two natural gas-fired combined cycle
power plants, a 1,509 megawatt plant and 1,710 megawatt facility. The plants are located in Northern
Oman at Ibri and Sohar. Mitsui owns 50.1 percent of the project, ACWA Power
owns 44.9 percent and the remaining 5 percent is owned by DIDIC.
A 15-year power purchase agreement was signed with OPWP to facilitate the ownership and operation of both plants. The facilities will be connected to the Main Interconnected System (MIS) in Oman.
“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,” ACWA Power President and CEO Paddy Padmanathan said. “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. These projects are of particular importance to us as they represent the largest single award in the region, second only to our existing Qurayyah IPP.”
The long-term plan is for the plants to be commercially operational by early 2019, at which point they will provide nearly 30 percent of Oman’s electricity.
“We're a committed partner in helping drive economic development in Oman through the delivery of safe, power and water at the lowest possible cost,” Rajit Nanda, chief investment officer of ACWA Power, said. “This ceremony comes following a wonderful year for ACWA Power in Oman with the commencement of operations from our recent expansion at our ACWA Power Barka facility together with the achievement of ground breaking in the recently awarded Salalah2 IPP all of which are a sign of our steadfast commitment to Oman.”
In the previous year, ACWA Power closed on project financing for eight IPP projects.