Muscat : Oman government has raised the minimum percentage that an independent power and water company has to divest in favour of investing public (through an initial public offering on the Muscat Securities Market ) to 40 per cent from the current 35 per cent, a top-level official of Oman Power and Water Procurement Company (OPWP) told journalists on the sidelines of Oman Construction Summit 2014 here yesterday. However, this is applicable only for new independent water and power projects (IWPPs), which include the (proposed) Quriyat independent water project and the second Salalah independent power venture. Quriyat desalination project will have an installed capacity to produce 45 million gallons of water per day. "We have received an instruction from the Public Authority for Electricity and Water (PAEW) to change the IPO requirements in all new power and water projects. However, it is not applicable to existing IWPPs or those projects that are under construction," said Ahmed Al Jahdhami , chief executive officer of the state-owned Oman Power and Water Procurement Company ."Quriyat (desalination project) is at the request for proposal stage," he added. In the case of a second independent power project (IPP) in Salalah, the authorities are in the process of short-listing companies that can submit their bids. "The list is being discussed with the authorities and it is going to be finalised shortly," noted Al Jahdhami. The OPWP has floated a tender to pre-qualify companies for developing the Salalah independent power project with a generation capacity in the region of 300MW-400MW at Raysut in Salalah. Once the pre-qualification process is finalised, a request for proposal (RfP) will be issued asking the qualified firms to submit their bids for developing Salalah IPP 2 and for taking over the existing plant of Dhofar Power Company (DPC). The successful bidder will have to take over and operate the existing 250MW power project of the state-owned DPC, which will be part of the proposed concession agreement. In effect, the concession winner will produce around 550MW-650MW once they commission the project, which is seen in the second quarter of 2016.
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