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.