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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Muscat Electricity privatisation plan shelved

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A keenly anticipated plan for the partial privatisation of Muscat Electricity Distribution Company (MEDC), a wholly government owned utility overseeing the distribution and supply of power primarily to Muscat Governorate, has been shelved for now, according to a top official of Nama Group.


Eng Omar al Wahaibi, CEO, attributed the Group’s decision to the less than favourable economic environment prevailing in the region. “Due to the regional economic conditions, the Privatisation Steering Committee will be revising the mode and model to achieve a long-term and market-proof disinvestment strategy,” he said in a statement.


The utility’s privatisation was widely seen as a potential paradigm for the government’s long-term strategy for divesting its holdings in state-owned generation, transmission, distribution and supply assets in the Sultanate.


Just last month, Nama Group said the planned privatisation of MEDC would begin with the divestment of a minority portion of the company’s share capital through a combination of private placement and an initial public offering (IPO). It had also named Ubhar Capital as a financial adviser for the privatisation process, BankDhofar for the subscription process and Al Busaidy, Mansoor Jamal & Co as the legal adviser.


Conrad Prabhu


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