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Oman : Oman's Manah IPP to transfer ownership to government by 2020
Publish Date : 22-Jul-2016
Oman's first Independent Power Project (IPP), the Manah power plant, will transfer ownership to government in 2020.
This transfer marks the end of the 20-year Power Purchase Agreement (PPA) underpinning the procurement of the project, expected to be a significant milestone in the ongoing evolution of the privatisation process underway in Oman's power and water industry.
The 264 megawatt (MW) capacity gas-fired facility located in Dakhiliyah Governorate, was the first privately developed and owned power plant when it entered into operation in stages starting in 1996.
The project offered a useful template to procure new privately developed and financed power and water schemes that underscore the success of the Omani government's pioneering initiative to unbundle, restructure and privatise this critical sector.
(Manah IPP's) Power Purchase Agreement (PPA) is set to expire in December 2020, at which time ownership of the plant transfers to the Government.
Manah IPP is the first privately developed power plant which is scheduled to fall out contract, with next to follow the Al Kamil and Barka 1 power plants, which are currently in the process of negotiations for contract extensions to the year 2021.
