Sohar 3 power plant to start operations early next year; IPO likely in Q3 2019

Muscat - 

Shinas Generating Co (SGC), the developer of Sohar 3 independent power project, announced that the new power plant would commence commercial operations in the first quarter of next year. 

. SGC is also targeting to launch an initial public offering (IPO) in the third quarter of 2019 to list the company on the Muscat Securities Market.

In 2016, a consortium of Mitsui & Co (50.1 per cent shares), ACWA Power (44.9 per cent shares) and Dhofar International Development and Investment Holding Co (DIDIC) (five per cent shares) had won the contract to develop Sohar 3 power plant.

“The project is the second largest power plant in Oman with a net capacity of 1,710MW,” Eng Abdullah Ali al Nofli, chief executive officer of SGC said. He said the work progress at the plant has reached a very advanced stage after completing the construction work and commencing the commissioning and testing phase.

Nofli pointed out that Sohar 3 power plant, strategically located at the Port of Sohar, is connected to a newly constructed power transmission network with a capacity of 400kV, which contributes to the commercial and industrial boom in the Governorate of North Al Batinah and the entire country.

He noted that total investment to develop the plant was approximately RO368mn. “The company also committed towards in-country value approach and allocated more than 21.6 per cent of total construction contracts value (amounting to RO65.4mn) to the local companies.”

Nofli said, as per the long-term project founders’ agreement with Oman Power and Water Procurement Co (OPWP), SGC will present an attractive investment opportunity by offering 40 per cent of its shares in an IPO in the third quarter of 2019.

SGC was established in 2016 after the consortium of Mitsui & Co, ACWA Power and DIDIC signed the power purchase agreement (PPA) with OPWP on March 1, 2016. Under the PPA, the consortium builds, owns and operates the plant and sell power to OPWP for a period of 15 years from 2019.

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