Oman plans to spend over $ 6 bn in power sector

The oil-rich gulf Sultanate of Oman intends to spend over $ 6 bn by 2016 to augment power generation capacity by building a new power plant and increasing the capacity of two existing plans.
The head of Oman's General Electricity Authority for Electricity and Water, Moahammed bin Abdulla al-Mahrouki said on the sidelines of an energy summit that the nation's energy demand has doubled to around 3,800 MW over the past decade as a result of growing industrial activity. The demand for electricity in the country is expected to grow to 4,600 MW by 2016.

Al-Mahrouki said that his country has begun the preliminary work for setting up a new power plant at Al Ghubrah, in the governorate of Muscat, and expansion of two operating plants.
The Al Ghubrah Independent Water & Power Project will have a capacity to generate 450 MW-600 MW of electricity and 30 mm imperial gallons per day (MIGD) or 136,000 cmpd of desalinated water, at an estimated cost of around $ 1-$ 1.2 bn.

The Oman Power and Water Procurement Company (OPWP), a wholly owned subsidiary of the 100 % government-owned Electricity Holding Company (EHC), has already invited "expressions of interest" from potential bidders for the Al Ghubrah project. The preferred bidder will be selected by July and the contract is expected to be awarded by October 2010. The plant is expected to go on stream by 1 April 2013.
OPWP will enter into a 15-year power and water purchase contract with the successful bidder of the project. The consultants for the project are Ernst & Young, DLA Piper and British Power International.

Al-Mahrouki further stated that the government plans to spend another $ 1 bn for the expansion and modernisation of the power grid in the country.
Oman has weathered the storm of global financial crisis as the economy is slowly returning to pre-crisis levels. The International Monetary Fund (IMF) has predicted a GDP growth of 3.8 % for the Sultanate in 2010, slightly lower than 4.1 % estimated for 2009. The nation's budget for 2010 is $ 18.6 bn, the largest so far in its history, based on an oil price of $ 50 a barrel compared with $ 45 for 2009 with increased allocations for the power sector.