99.4% of Ibri power project completed
It is expected to commence the commercial operation on schedule, after the completion of the efficiency-testing phase in April 2019.
MUSCAT: A’Dhahirah Power Generating Company (AGC) announced the completion of 99.4 per cent of the largest energy project in the wilayat of Ibri with a production capacity of 1,509 megawatts.
The independent power producer (IPP) plant is being developed by a consortium of Mitsui holding 50.1 per cent of the shares, ACWA Power and Dhofar International Development and Investment Holding Company (DIDIC) with 44.9 per cent and five per cent, respectively. It is expected to commence the commercial operation on schedule, after the completion of the efficiency-testing phase in April 2019.
Eng. Ali Mohammed Al Ra’eesi, Chief Executive Officer of AGC, representing the consortium, said, “The plant is the largest investment project in the Governorate of A’Dhahirah with international capital to contribute to the development of the Sultanate’s progress.”
He said the company was keen to maximise the economic return of the project on the local community through the award of contracts to local companies, providing training opportunities for students and employment opportunities for graduates.
“Total contracts awarded to local companies amounted to OMR65 million through procurement, logistics services or technical contracts,” he said. This represents 17 per cent of the total investment of OMR372 million (US$967 million).
“The company also pledged to provide training opportunities to students of engineering and technical collages in the Governorate of A’Dhahirah, providing training rooms and trainers in this field,” Al Ra’eesi said.
He stressed the vital role played by this project as a catalyst for the economic boom in the governorate, and to meet the increasing demand for electricity in light of urbanisation in the Governorate of A’Dhahirah in particular, and in the Sultanate in general.
He also said that the commercial operation of the plant will begin in early April 2019.
The two gas-fired combined cycle power plant operates according to the latest global standards to increase the efficiency of operation and production of electricity at a lower price and reduce costs. The energy produced will be pumped into the National Electricity Transmission Network to supply the National Grid with electric capacity to meet the increasing demand for electricity.
The company will also contribute to the national economy by offering part of its shares in the Muscat Securities Market via an Initial Public Offering next year, providing a promising investment opportunity in a sector characterised by sustained growth and sustainable returns, especially in light of the company’s acquisition of the power purchase contract for 15 years with the state-owned Oman Power and Water Purchase Company (OPWP).