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ACWA Power and Mitsui win $630mn Salalah 2 IPP

Mitsui to construct 400MW power project in south of Oman.

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Dhofar Power Plant
Dhofar Power Plant

Oman Power and Water Procurement Company (OPWP) has awarded a consortium of ACWA Power, Japan’s Mitsui & Co and Dhofar International Development and Investment Holding Co. with the contract to develop the Salalah 2 power project.

Mitsui will build a 400MW natural gas-fired combined cycle power plant in the Salalah Industrial Area in southern Oman at a cost of $630mn, it said in a statement.

Under the deal it will also acquire the existing Dhofar Power Plant, which has an output of 273MW, and operate both plants and sell power to OPWP under a 15-year power purchase agreement.

The Japanese company has a track record in the upstream oil and gas sector in Oman though the Salalah 2 power project marks the company’s first involvement in the development of a power plant in the country.

Mitsui and ACWA Power will each hold a 45% stake in the project which is due to begin operations by January 2018. DIDIHC will hold the remaining 10%.

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