2 elec­tric­ity com­pa­nies to be pri­va­tised this year


This year will see the pri­vati­sa­tion of two elec­tric­ity com­pa­nies — out of five com­pa­nies set for pri­vati­sa­tion — namely Mus­cat Elec­tric­ity Dis­tri­bu­tion Com­pany (MEDC) and Oman Elec­tric­ity Trans­mis­sion Com­pany (OETC), ac­cord­ing to Omar bin Khal­fan al Wa­haibi, Chief Ex­ec­u­tive Of­fi­cer of Nama Hold­ing Group.

More than 16 com­pa­nies have al­ready sub­mit­ted ap­pli­ca­tions and are be­ing as­sessed, which shows that in­vestors place high con­fi­dence and cred­i­bil­ity in the Sul­tanate’s elec­tric­ity sec­tor thanks to trans­par­ent poli­cies and reg­u­la­tions gov­ern­ing the sec­tor, Al Wa­haibi said adding that the sub­scrip­tion will be in a later stage in ac­cor­dance with the pro­ce­dures.

Since re­struc­tur­ing in 2005, the elec­tric­ity sec­tor has man­aged to draw for­eign in­vest­ments worth more than RO 2.7 bil­lion. Be­sides, RO 400 mil­lion has been pumped into lo­cal in­dus­tries through elec­tric­ity sell­ing projects. The mar­ket value of the power projects at Mus­cat Se­cu­ri­ties Mar­ket has crossed RO 400 mil­lion cre­at­ing 1,000 jobs. The elec­tric­ity pro­duc­tion ca­pac­ity has in­creased three-fold from 2.9 to 8 gi­gawatt.

The CEO of Namma Hold­ing Group said that as a re­sult of co­op­er­a­tion with the Elec­tric­ity Reg­u­la­tory Au­thor­ity non-sub­sidised cost of elec­tric­ity dropped from 38 baisas per kilo­watt/hour to 31 baisas per kilo­watt/hour mak­ing the cost of elec­tric­ity pro­duc­tion trans­mis­sion in the Sul­tanate one of the most com­pet­i­tive in the world.

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