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Project to involve construction of two natural gas-fired combined cycle power plants with total capacity of 3,219MW
Power plants to supply approximately 30% of electricity that will be consumed in the Sultanate of Oman once commercial operation is achieved
Signing ceremony held under the patronage of His Highness Sayyid Taimur Bin As'ad Al Said
Dubai, UAE, For Immediate Release: 15 May, 2016: Oman Power and Water Procurement Company SAOC ("OPWP") announced that a consortium led by Mitsui & Co., Ltd., ACWA Power, and Dhofar International Development and Investment Holding Co. SAOG ("DIDIC") has been awarded the 3,219 MW Ibri Sohar-3 power generation project, which is the largest single tendered Independent Power Project in Oman in the official signing ceremony commencing held on the 15th of May 2016 at Muscat. Oman. The ceremony was held under the patronage of His Highness Sayyid Taimur Bin As'ad Al Said.
The project includes two natural gas-fired combined cycle power plants of 1,509 MW and 1,710 MW each, located at Ibri and Sohar in Northern Oman. Mitsui is the lead investor and the managing member of the project, owning 50.1% of the project, with ACWA Power having a further 44.9% of the shares and DIDIC, 5%.
Both plants will be owned and operated under a 15-year power purchase agreement with OPWP and will be connected to the Main Interconnected System ("MIS") in the Sultanate of Oman.
Commenting on the award, Paddy Padmanathan, President and CEO of ACWA Power, said: "Demand for electric power in the Sultanate is increasing at a rapid pace so these projects are essential to provide reliable and efficient power to drive economic growth and development. This is our fifth project in the Sultanate of Oman, and in conjunction with our consortium partners we're committed to meeting the target commissioning dates set out in the agreements. These projects are of particular importance to us as they represent the largest single award in the region, second only to our existing Qurayyah IPP."
Once commercially operational in early 2019 the plants will supply approximately 30% of electricity demand in the Sultanate of Oman.
"We're a committed partner in helping drive economic development in Oman through the delivery of safe, power and water at the lowest possible cost," said Rajit Nanda, Chief Investment Officer of ACWA Power. "This ceremony comes following a wonderful year for ACWA Power in Oman with the commencement of operations from our recent expansion at our ACWA Power Barka facility together with the achievement of ground breaking in the recently awarded Salalah2 IPP all of which are a sign of our steadfast commitment to Oman."
ACWA Power has operations in 12 countries across three continents, including Oman, Saudi Arabia, the UAE, South Africa, Egypt, Morocco, Jordan, Mozambique, Turkey and Vietnam. Last year saw the company close project financing of eight IPP projects with a total capacity of 1,650MW (excluding this project). These include a total of 770MW for renewable energy projects at a total project cost of USD 5 billion.
About ACWA Power:
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 12 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power's portfolio, with an investment value in excess of USD 32 billion, can generate 22.8 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.
ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).
ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.
ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.
For more information, visit www.acwapower.com, or contact:
Jon Barber
Director - Communications & External Affairs
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© Press Release 2016