Oman opens Salalah power plant
14 January 2004 – Oman’s Defence Minister Sayyid Badr bin Saud bin Harib al-Busaidi will today inaugurate the RO. 105m ($273m) Salalah power plant at a ceremony that will be attended by ministers, undersecretaries and other officials. Added to this cost is the Ministry of Housing, Electricity and Water works
relating to privatizing Salalah power system at a cost of RO. 6m.
Sheikh Suhail bin Mustahil Shimas, Minister of Housing, Electricity and Water said the project which was implemented by Dhofar Power Company included a new central gas operated station with a capacity of 2.2 MW at Raysut Industrial
Estate to replace the diesel stations in Salalah, Raysut, Mirbat, Sadah and Thumrait and help improve performance and reduce operation cost.
He added the project also included establishing a 132 Kv high voltage grid to transform power from the plant to load centres in Salalah and Thumrait and setting up a number of stations to distribute electricity.
A 20-year long concession agreement was signed with Dhofar Power Company on March 17 2001 to privatize Salalah power system. As per this agreement, ownership of some of the system assets are transformed to the company, to operate, maintain and develop the plant.
The concession agreement came into force from the date of the projects commercial operation on 1-5-2003. The agreement also stipulated that the company achieves 45 percentage of Omanisation during the first year and to increase this percentage to 75 per cent by the end of the concession duration.
Sheikh Shimas noted that the government is always keen to provide the private sector with opportunities to set up and operate such important projects to meet the requirements of the continued growth in the country.
He said a power and desalination plant in Barka was opened in December last year. The project included two gas operated turbines and one steam turbine with a total productive capacity of 427 MW and 3 desalination units with a capacity of 20
million gallons per day.
Another project, the 285 MW Al-Kamil Power Plant, was also opened to improve efficiency of power supply, reduce operation and maintenance cost and maintain a clean environment.