Oman is committed to take giant strides in its pioneering privatization program of the power sector. The latest power project awarded to private sector s the new power and desalination plant in Barka.

With the privatization of Al Rusail Power Company, the focus is set to shift to the next phase of the Government’s path-breaking privatization strategy for the power and related water sector. The privatization of Al Rusail Power Company demonstrates the success of the restructuring process and gives the Ministry of National Economy a robust platform for future electricity sector privatizations.

Next on the cards for privatization are the remaining power generation companies:

Wadi Jizzi Power Company
Al Ghubrah Power and Desalination Company

Privatization of the power transmission company is under consideration by the Ministry of National Economy, while it remains committed to the privatization of power generation and distribution companies.

A consortium including Abu Dhabi’s investment arm Mubadala Development Company, Suez Energy International and National Trading Company of Oman shall build the estimated $ 500 million plant, as well acquire a 100% stake in Al Rusail Power Company, a 665 MW power plant, which was previously owned by the Government.

Barka Project will comprise the development, construction and operation of Barka Phase II, which would have 678 MW and 26.4 million gallons per day (gpd) Independent Power and Water Project (IWP). South Korea’s Doosan Heavy Industries & Construction Company has been contracted to construct the desalination facility and the power plant at Barka by 2009.

Among other privatization projects is the IWP at Sur, for which Veolia Environment of France is reported to have been recommended as developer, who has teamed up with the local Bahwan Engineering Company.

Hasan Juma Backer Trading and Contracting has won a RO 66.2 million contract from the Ministry of Housing, Electricity and Water to supply potable water in the Batinah region. This contract has been billed as the single largest water supply contract to be awarded in the Sultanate.

Oman Power and Water Procurement Company (PWP) has floated tender inviting bids from multinational firms to build a large Independent Water and Power Project (IWPP) in Salalah.

The envisaged capacity of the gas-fired power plant is 400 MW of power and 15 million gallons of water a day.

The project, which is on a BOO basis, will have the generation capacity of 250 MW in the first phase, which is expected to be ready by 2009. Power generation capacity will be raised to 400 MW by 2013.