OPWP launches tender process for financial advisor

Oman Power and Water Procurement (OPWP) has launched a tender process to hire a financial advisor for the 489 MW Salalah IWPP refinancing plan.

The Salalah IWPP, which has been operational since May 2012, is owned by SembCorp Salalah Popwer and Water Company. The Water & Power project includes a 489 MW gas-fired combined cycle power plant and a reverse osmosis seawater desalination plant, which has a contracted water capacity of 15 million imperial gallons per day under a 15-year power and water purchase agreement with OPWP.

The sponsor has invested about US$1 billion to develop the build, finance, own and operate (BFOO) project.

We have recently reported that OPWP had awarded a consortium of ACWA Power, Mitsui & Co and Dhofar International Development and Investment Holding Company (DIDIC) the contract to develop the Salalah 2 Independent Power Project (IPP).

The scope of the Salalah 2 IPP includes design, construction, ownership, financing, operation and maintenance of a 445 MW high efficiency facility which will extend the current power capacity of 273 MW to 718 MW. The total project investment is estimated at US$630 million.