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Oman to sign $2.2bn deal for Ibri and Sohar IPP

OPWP will sign several agreements to build Ibri and Sohar-3 independent power plants (IPP), with a consortium of Japan’s Mitsui & Co., ACWA Power, and Dhofar International Development and Investment Holding Co (DIDIC)

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Ibri, IPP, Oman, Power plant, Power projects, Sohar, News

The Oman Power and Water Procurement Company (OPWP) will sign several agreements to build Ibri and Sohar-3 independent power plants (IPP), with a consortium of Japan’s Mitsui & Co., ACWA Power, and Dhofar International Development and Investment Holding Co (DIDIC).

The signing ceremony will be held at Al Bustan Palace Muscat on Sunday, said a company release.

The project, which consists of two new natural gas-fired combined cycle power plants, is the largest power procurement in the Sultanate with a total installed capacity of 3,219 megawatt located at Ibri, and Sohar Industrial Port in northern Oman.

Under the deal, the consortium will build, own and operate both plants and sell power to OPWP under a 15-year power purchase agreement a cost worth over $2.2bn.

The mega power plants will supply approximately 30% of the electricity that will be consumed in the Muscat area, once commercial operations are underway, according to an earlier release from Mitsui & Co.

Mitsui & Co., Ltd. as the managing member will hold 50.1%, ACWA Power will hold 45% stake in the project, which is due to begin operations by the first quarter of 2019. DIDIC will hold the remaining 5% in the new firm.

Demand for electric power in Oman is increasing rapidly due to economic growth driven by the oil and gas sector.

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