MIRBAT | The foundation stone for the RO385 million power and water desalination plant in Al Shur plain in the wilayat of Mirbat, was laid at a ceremony yesterday, under the auspices of Sheikh Mohammed bin Marhoon Al Ma’amari, minister of state and governor of Dhofar.

Sembcorp Salalah Power and Water Company — a joint venture between Oman Investment Corporation and Sembcorp of Singapore — was established to carry out the project.

Mohammed bin Abdullah Al Mahrouqi, chairman of the Public Authority for Electricity and Water (PAEW) and chairman of Dhofar Power Company, announced that the project comes within the framework of the efforts undertaken by the government to increase local and foreign investment in power and water projects and establish an economic base that rely closely on the participation of the private sector.

Mahrouqi stated that the company will have to offer 35 per cent of its shares for public subscription, which will be listed on the Muscat Securities Market (MSM).

He pointed out that as per the agreements signed with Sembcorp Salalah Power and Water Company, a Build, Own and Operate (BOO) power and water plant will be set up in the wilayat of Mirbat in the Dhofar governorate.

Oman Power and Water Procurement Company (OPWP) will purchase the generated power and desalinated water for 15 years after the commencement of commercial operation of the project. The production capacity of the plant is 445 megawatts of power and 15 million gallons of desalinated water per day.

He affirmed that the Dhofar Power Company will establish and take up the transport and distribution network to link the new plant and meet the growing demand from electricity. The approved capital cost for enhancing the power network during the next five years is more than RO200 million.

15-year agreement

Tang Kin C., the CEO of Sembcorp Group, said that the signing of the 15-year power and water purchase agreement with Oman Power and Water Procurement Company (OPWOP), Sembcorp Salalah Power and Water Company, will supply 455 megawatts of power and 15 million gallons of potable water per day from a new facility to be built.

This facility will be the largest and most efficient power and water plant in Dhofar and will play a major role in meeting the region’s growing power and water needs. It will also support the continued growth and development of the region.

Eng. Kalat bin Ghalum Al Balushi, CEO of the Oman Investment Corporation, said that the project, which is one of the major investments for Oman Investment Corporation, is the first investment from Sembcorp in the Sultanate.

He stated that Sembcorp is one of the international companies specialised in power generation, water desalination and industrial utilises services. The company has built and developed a number of power plants in different parts of the world, including the UK, China, Indonesia, the UAE and Singapore. — ONA

The ceremony was attended by ministers, Dr Yaqoub Ibrahim, minister of environment and water resources in Singapore, members of the State Council and Majlis Al Shura, advisors, officials and dignitaries in the Dhofar governorate.