Oman's Manah IPP to transfer to government by 2020
The Manah power plant, Oman's first Independent Power Project (IPP) will transfer ownership to government in 2020
The Manah power plant, Oman's first Independent Power Project (IPP) will transfer ownership to government in 2020, officials have revealed.
The transfer, which will mark the end of the 20-year Power Purchase Agreement (PPA) underpinning the procurement of the project, billed as a significant milestone in the ongoing evolution of the privatisation process underway in Oman's power and water industry.
Located in Dakhiliyah Governorate, the 264 megawatt (MW) capacity gas-fired facility was the first privately developed and owned power plant when it was brought into operation in stages starting in 1996.
The project provided a useful template for the procurement of new privately developed and financed power and water schemes that underscore the success of the Omani government's pioneering efforts to unbundle, restructure and privatise this critical sector.
"(Manah IPP's) Power Purchase Agreement (PPA) expires in December 2020, at which time ownership of the plant transfers to the Government," said the Oman Power and Water Procurement Company (OPWP), which is the sole off-taker of output from Manah, as indeed other power plants in operation across the Sultanate.
"OPWP is considering several options for the continued operation of the plant, including a competitive tender for sale of the asset, backed by a multi-year PPA with OPWP," the state-owned utility -- a wholly owned subsidiary of Nama Group -- added in its newly released 7-Year Outlook Statement.
Manah IPP is the first privately developed power plant that is scheduled to fall out contract. Next in line to fall out of contract are the Al Kamil and Barka 1 power plants, which are currently in the process of negotiations for contract extensions to the year 2021.