Oman Power and Water Procurement Company (OPWP) and a multinational consortium signed a deal worth US$1.5 billion to build, own and operate the Sur Independent Power Project.
The Sur IPP is the largest IPP to be undertaken in the Sultanate and will provide 2,000 MW of capacity after full commissioning in 2014.
The power plant will be located on the Sur Industrial Estate and utilises natural gas supplied by the Ministry of Oil and Gas via its existing infrastructure in that location.
The project will come on stream in two phases, with early power of 433 MW scheduled to be available from April 2013 and the remaining 1,567 MW scheduled for commercial operation in April 2014.
The multinational consortium consists of Marubeni Corporation, Chubu Electric Power Companies, Qatar Electricity and Water Company and Multitech LLC, a Bahwan Engineering Group company.
The project attracted strong international competition and the selection of a consortium including Marubeni and Chubu Electric, represents the first major investment of Japanese based power companies in the power generation sector in Oman.
The Power Purchase Agreement entered into between OPWP and the project company commits the parties to the purchase and sale of the full capacity of the plant over a period of 15 years.