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Oman Power and Water Procurement Company (OPWP) has awarded a build-own-operate (BOO) contract for the Salalah-2 independent power producer (IPP) project to a consortium of Japan’s Mitsui (45%), Saudi Arabia’s ACWA Power (45%), and local firm Dhofar International.
The $630mn project will mainly involve the construction, maintenance and operation of a 400MW combined cycle gas turbine (CCGT) plant in the Salalah industrial area on the coast of Oman’s southern Dhofar governorate.
Mitsui says the agreement includes the purchase of the existing 273MW Dhofar power plant. “Mitsui will operate both plants and sell electric power under a 15-year power purchase agreement with OPWP,” the company says. Start-up of the new plant is scheduled for January 2018.
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