RO 633m Sur Power Plant opens

By: Vinod Nair

MUSCAT: Two new power projects in Ibri and Sohar with a capacity to generate 3.2 gigawatts of power are now in the bidding stage, said the Khalid Jolo, Chairman of the Phoenix Power Company, owner of the Sur Independent Power Plant. “Phoenix Power plant along with its same consortium partners will be taking part in the bids as the tender was floated only recently,” said Jolo. He said that there are no expansion plans for the Sur Independent Power Plant, which was officially inaugurated yesterday, but plans are under way to launch an IPO hopefully this year. Under the law it is mandatory to float 35 per cent of the shares, he said.

Meanwhile, His Highness Sayyid Hamad bin Thuwaini al Said, inaugurated the Sur Power Plant yesterday. Located in Sur Industrial Estate, the state-of-the-art plant constitutes an investment of RO 633 million, and provides around 28 per cent of the Main Interconnected System’s (MIS) current contracted capacity. It will produce 2000 MW of power.

The project is part of the continuous development of Independent Power Projects by Oman Power and Water Procurement Company (OPWP, a member of the Nama group) to ensure that sufficient power generation resources are available to meet the growing electricity demand in the Sultanate of Oman which is forecast to increase at an annual rate of around 9 per cent. The launch of the project is in line with the Sultanate’s strategy which aims at increasing local and foreign investments in electricity generation and at establishing a firm economic foundation that relies on private sector participation. The project will also help withdraw some less efficient plants that have been in service for a long period.

312339HH Sayyid Hamad said the power plant will contribute to supporting the existing plant and supply the growing demand for electricity due to construction and population growth.

Ahmed bin Saleh al Jahdhami, CEO, OPWPC, said that OPWPC singed the project agreements in July 2011 with Phoenix Power Company to build, own and operate Sur Power Plant.

As per the agreement terms, OPWP company will purchase the power generated for 15 years from the date of commercial operation.

The total number of employees at the different administrative and technical fields at the beginning of this year stood at 973 in different administrative and technical fields. Sur IPP Project will represent more than 28 per cent of the current installed capacity on the Main Interconnected System.

Owned by Phoenix Power Company, the founding shareholders of which are Axia Power Holdings BV (Marubeni Corporation, Japan), Chubu Electric Power Sur BV (Chubu Electric Power Co, Inc, Japan), Qatar Electricity and Water Company (QSC) and Multitech LLC (part of the Suhail Bahwan Group, Oman); and operated by Phoenix Operating and Maintenance Company, the combined cycle power generation plant has a total installed capacity of approximately 2,000 MW.

The power plant comprises three blocks, two of around 800 MW and one of around 400 MW and has been in commercial operation since December 11, 2014.

Phoenix Power Company currently generates its revenues pursuant to a 15-year term Power Purchase Agreement (PPA) with OPWP which is part of the government-owned Electricity Holding Company SAOC (Nama Group Companies). The power produced from the power plant is fully contracted to OPWP and used to meet the growing power demands of the Main Interconnected System (MIS) region during the term of the PPA.

SOURCE: OMAN DAILY OBSERVER

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