Korea Western Power, a major South Korean electric power generation company, has secured a major contract to build and operate a large-scale gas-fired combined-cycle power plant at Duqm in Oman, reported Maeil Business. 

The Duqm Gas-Fired Combined-Cycle Power Plant Project is being implemented by Nama Power and Water Procurement

Company on a build–own–operate (BOO) scheme at a total investment of 1.3 trillion won ($898 million).

To implement the project, Korea Western Power plans to soon establish a special purpose vehicle (SPV) in Oman, complete financing by April, and then begin construction on the 877MW natural gas power plant, which is due for completion by March 2029.

The agreement was sealed in the presence of Korea Western Power President Lee Jeong-bok; Ambassador Kim Ki-joo, Ambassador of the Republic of Korea to the Sultanate of Oman; and Kim Sung-jae, head of the KOTRA Muscat Trade Center, along with other Korean representatives.

Saad Sherida Al-Kaabi, Minister of Energy of Qatar, Suhail Mohammed Faraj Al Mazroui, Minister of Energy and Infrastructure of the UAE and Salim bin Nasser bin Said Al Aufi, the Minister of Energy and Minerals of Oman, were also present at the signing ceremony.

From the consortium side, Mohammed Nasser Al Hajri, the chair of Nebras Power and Yousif Ahmed Al Ali, head of the Abu Dhabi Water and Electricity Authority (ADWEA) took part along with Ahmed bin Salim Al Abri, president of Nama Power and Water Procurement Company.

Korea Western Power said the plant is scheduled to start commercial operation in April 2029 and will be operated for the next 20 years.

Under the BOO model, private investors finance and operate social infrastructure facilities, recovering their investment over time, said the Maeil Business.

The Duqm contract win comes following the success of its 500 MW Manah I Solar Power Plant project, stated a top Korea Western Power official.

Korean power equipment and steam turbine manufacturers are expected to achieve export performance of about $400 million in locally produced power equipment and steam turbines in Oman through the Duqm Gas project, he added.