Oman Looks To Privatization To Modernize Power Grid

Transmission firm OETC and one of four local distribution grid operators will be first to be partially privatized in a bid to inject capital and technology in Oman’s power sector. “Big players” are sought with officials valuing the assets at over $3bn. This looks highly optimistic.

Oman state firm Nama Holding, which oversees the sultanate’s electricity and desalination assets, has received 25 expressions of interest from international investors for stakes in state-owned Oman Electricity Transmission Company (OETC) and Muscat Electricity Distribution Company (MEDC).

Nama has not made public how much it expects to raise from the OETC and MEDC sell off but deputy CEO Mansour al-Hinai last year valued OETC and MEDC at a combined $3.2bn. “We’ll be looking for big players with a track record of actively owning such assets…to deliver new technology to Oman such as smart meters,” Mr Hinai says.

OPTIMISTIC VALUATION

DATA INSIDE THIS ARTICLE

chart OETC Peak Load (Gw) Has Risen 75% Since 2010 Whilst Total Output Has More Than Doubled