MUSCAT: Nama Power and Water Procurement Company (PWP), the single procurer of power and water capacity in the Sultanate of Oman, has formally kicked off the procurement process linked to the development of a pair of gas-based Independent Power Projects (IPPs) with an aggregate net capacity of 2,400 MW.
Both projects are scheduled to be fully operational by April 1, 2029.
On Thursday, December 4, 2024, wholly state-owned Nama PWP – part of Nama Group – issued a Request for Expressions of Interest (EOI) inviting international developers to register their interest in participating in the competitive procurement process. Submissions of EOIs are due in by December 19, 2024.
“The projects will include development, financing, design, engineering, construction, ownership, operation, and maintenance of combined cycle gas turbine (CCGT) power plants to produce electricity for transmission and distribution in the main interconnected system (MIS) grid,” said Nama PWP on the upcoming IPPs.
“The projects will have a total aggregate net capacity of 2,400 MW at reference site conditions and are expected to be commissioned and made available by April 1, 2029. The projects also involve development of early generation capacity of 1,700 MW by April 1, 2028,” it added.
Earlier, in comments to the Observer, Ahmed bin Salim al Abri, CEO - PWP, underlined the significance of these gas-based power procurements: “This project will enhance grid stability in Oman by integrating advanced thermal power plants, ensuring reliable and sustainable energy through a balanced energy mix. It marks a significant step in the company’s ongoing commitment to providing a sustainable energy future for Oman.”
The initiative, he further noted, marks a significant step in Nama PWP ongoing commitment to ensuring a reliable and sustainable energy future for Oman through a balanced mix of energy sources, including both renewable and thermal power plants.
Both IPPs are proposed to be procured in substantially the same way as existing IPPs, said Nama PWP.
“Project agreements including power purchase agreement, usufruct agreement, natural gas supply agreement, gas connection agreement, electrical connection agreement and electrical supply agreement are expected to be substantially similar to that of previous IPPs successfully developed and financed in the Sultanate of Oman,” it explained.
In the next stage of the procurement process, a Request for Proposals (RFP) is expected to be issued in Q1 2025, with bid submissions slated during Q3 2025. A contract award is anticipated in the same quarter, with project agreements set to be formalized before the end of 2025.
Synergy Consulting, an Indian-based international financial and corporate advisory services firm, has been named by Nama PWP as its Lead, Financial and Commercial Advisor on the procurement process. Fichtner is the Technical Advisor and DLA Piper is the Legal Advisor.
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