The Oman Power and Water Company (OPWP) said it plans to invite companies to submit proposals to build a new 1500 mega watt independent power project on the industrial estate at Sur.

Subject to securing the necessary environmental and regulatory consents, OPWP expects to issue the request for proposals (RfP) for the project early next month (August), the company said in a statement.

The RfP will invite proposals for around 400 MW of early power ahead of summer peak demand in 2013 and full commissioning of 1500 MW ahead of 2014 summer peak demand, it added.

OPWP had originally proposed a new independent power project at the Al Ghubrah site to take advantage of existing infrastructure and allow older plant to be retired to improve environmental compliance at the site.

However, in line with best international environmental practices, the Sultanate is seeking to locate new power stations away from residential areas.

A large scale reverse osmosis technology water project of around 40 MIGD will be developed at the Al Ghubrah site to safeguard growing water demand requirements in the Muscat region and further improve environmental conditions at the site, the statement said.

“The proposed location on the industrial site at Sur is ideal for the development of a large scale power plant,” said Bob Whitelaw, chief executive officer of OPWP.

“A large site, ready for construction, with good access to the sea is readily available. Also, gas will be available by tapping into the existing pipeline feeding the Oman LNG plant which runs on the outskirts of the proposed site,” he explained.

“OETC is already implementing projects to reinforce the transmission system around Sur which will allow power to be efficiently exported to the Main interconnected system,” he added.

“Implementation of the proposed Sur IPP follows recent confirmation by the Oil and Gas Ministry Under-Secretary, Nasser bin Khamis al Jashmi, that the power sector would receive priority over the allocation of Oman’s gas resources,” Whitelaw continued.

“This reinforces the Government’s commitment to the long term development of the electricity sector in which private sector investment plays a key role. Since the market restructuring in 2005 the electricity and related water sector has benefited from public and private sector investment with significant levels of foreign direct investment in power and water production facilities.”

“In addition to increased infrastructure investment, the electricity market reforms have helped secure improvements in the efficiency of gas use and major reductions in system losses,” he concluded. – TradeArabia News Service