ACWA Power signs an agreement to develop Phase 2 of Salalah IPP

The agreements were signed by Mohammed Abunayyan, Chairman ACWA Power, Engineer Ahmed Bin Saleh Al Jahdhami, CEO of OPWP, Tariq Abdulhafidh Al Ujaili, Vice Chairman, Dhofar International Development and Investment Holding Co and Kazuhiro Hashimura, General Manager of Mitsui & Co., Ltd.

The new natural gas-fired combined cycle power plant – estimated at 2.32 Billion Saudi Riyals ($620 Million USD) – will have an installed capacity of 445 MW and will be connected to the existing Salalah grid. According to the agreement, OPWP will have the right to buy the generated electricity over a period of 15 years. The plant is planned to be commercially operated by beginning of 2018.

Mohammed Abunayyan, Chairman ACWA Power, said “We are honored with the trust bestowed upon us by Sultanate Oman’s Government to execute the additional expansion projects of Baraka 1 desalination plant. Our agreement today reflects the solid base ACWA Power has in Oman, one of our primary markets. The maturity of the Omani government’s privatization program and welcoming environment for investors, are highly applauded as their efforts drive towards liberalizing the electricity sector through its plans for transition to an open merchant market in a smooth and planned manner.”

From his end, Thamer Al Sharhan, Managing Director ACWA Power said: “Salalah 2 IPP is another success and important milestone in ACWA Power’s portfolio that reflects the company’s commitment in developing the Omani power and water sector, and provide job opportunities, training and developing Omani youth and workforce. ACWA Power is proud to have achieved 80% Omanization in its Baraka 1 power station since the acquisition happened in 2010 and we are keen with our partners to succeed in adding value to the Sultanate socio-economic through our projects.”