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Construction begins on Salalah 2 IPP

ACWA Power and Mitsui break ground on 445MW power plant

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Salalah, News

ACWA Power and Mitsui have started construction work on the second phase of the Salalah IPP gas-fired combined cycle power plant in southern Oman.

The consortium is developing phase 2 at a cost of $620mn which will have a capacity of 445MW once fully operational, scheduled for the beginning of 2018, a statement said.

The plant will be connected to the existing Salalah grid, generating a total capacity of 718MW including the existing Dhofar Power Plant which has an output of 273MW. OPWP will buy the power output over a period of 15 years.

Thamer Al Sharhan, managing director ACWA Power, said: "Today's breaking of ground for the second phase of the Salalah IPP reflects ACWA Power's commitment to providing our customers with end to end power solutions swiftly; while holding true to our focus on both efficiency and sustainability.

"Salalah 2 IPP is a key milestone in ACWA Power's portfolio that reflects the company's commitment in developing the Omani power and water sector, and provides job vacancies and train and develop Omani youth and workforce."

Naif Alawiad, CEO, Dhofar Generating Company, added: "Oman has a reputation as a trendsetter in the region's power and water sector, having pioneered the deregulation and liberalization of the industry to make it attractive for international developers to invest in this strategically vital sector.

"Salalah 2 IPP is a solid proof of Oman's strident efforts to make energy production more efficient to meet the country's industrial sector and growing population's demand for energy."

ACWA Power established its presence in Oman through its acquisition of Barka1 IWPP in 2010. With the addition of the new project, ACWA Power's portfolio in Oman will be responsible to deliver over 1,100 MW of power and 193,000 m3/day of desalinated water to OPWP.

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