Oman awards contract for two IPPs

Oman is boosting its generation capacity with the two new power plants.

The Oman Power and Water Procurement Company (OPWP) has awarded built, own, operate and transfer (BOOT) contracts for the country’s next two independent power projects (IPPs), Barka 3 and Sohar 2.

The contracts to construct and operate the plants have been awarded to a consortium consisting of the Kahrabel GDF Suez Group, the Bahwan Engineering Group, the Public Authority for Social Insurance, and the Shikoku Electric Company and the Sojitz Corporation. EPC contractors for the project are Germany’s Siemens AG and South Korea’s GS Engineering, Kahrabel GDF Suez said in a press release. The combined investment for both projects will be around 1,700 MUSD.

Barka 3 and Sohar 2 are greenfield natural gas-fired power projects with capacity of 744 MW each. The electricity produced by each project will be sold under a 15-year Power Purchase Agreement to the OPWP. Barka 3 and Sohar 2 will be adjacent to Kahrabel’s existing Barka 2 and Sohar IWPPs, both northwest of the capital Muscat.

The plants are to be fully operational by the second quarter of 2013, according to the OPWP website.

Kahrabel GDF Suez Group is already present in the Omani power sector through involvement in the Barka 2 and Sohar power and desalination plants and the Al Rusail gas-fired power plant. Together they represent an installed capacity of 1,921 MW and a water production of 268,000 m3/day.

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