The sultanate procured the 264MW gas-powered Manah IPP in the 1990s

The ownership of Oman’s first independent power project (IPP) has been transferred to the Oman Government.

The 264MW gas-powered Manah IPP was procured under a build, own, operate and transfer (BOOT) model in the 1990s.

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The transfer of ownership on 1 May follows the expiry of the power-purchase agreement (PPA) signed between the project company, United Power Company (UPC), and Oman Power and Water Procurement Company (OPWP), the sultanate’s sole power and water offtaker.

In its latest seven-year statement published last year, OPWP said it was ‘evaluating the prospects for a sale of the [Manah] asset under a new PPA for an extended period’.

New IPPs

There are plans to develop two solar photovoltaic (PV) IPPs in Manah, which is located 150km southwest of the capital Muscat.

OPWP had expected to issue the request for proposals (RFPs) for the Manah 1 and 2 IPPs in the first quarter of 2020. However, the tender has not been issued so far.

The state utility prequalified nine teams to bid for the contract in December.

The prequalified bidders are:

  • Masdar (UAE) / EDF (France)
  • Eni (Italy) / Softbank Energy (Japan)
  • Acwa Power (Saudi Arabia)
  • Jinko (China)
  • Korea Western Power Company / Hanyang Corporation / Solar Reserve / Nafath Renewable Energy (local)
  • Marubeni (Japan)
  • Power Construction Corporation of China
  • TagEnergy (Nigeria) / Al-Shanfari Group (local)
  • Total Solar International (France)

The Manah 1 and 2 solar PV projects, previously named solar IPP 2022 and 2023 respectively, will have a capacity of 500MW–600MW each.

In March, a consortium, comprising Saudi Arabia’s Acwa Power and Kuwaiti companies, Gulf Investment Corporation (GIC) and Alternative Energy Projects Company (AEPC), achieved financial closure for the planned 500MW solar PV IPP at Ibri.

Unlike the Manah gas-fired IPP, the new schemes will be developed according to the build, own, operate (BOO) model.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here