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Desalination plant planned for Duqm area


This request was made in anticipation to meet both the industrial water as well as non-industrial requirements of Duqm. Photo: Bloomberg (Picture for illustrative purpose only)

Muscat: Public Authority for Electricity and Water (PAEW) has requested Oman Power and Water Procurement Company (OPWP) to initiate procurement for a new independent water project (IWP) of capacity 30,000 cubic metre per day (seven million imperial gallon per day), to be completed in the fourth quarter of 2017.

This request was made in anticipation of a requirement to meet the industrial water requirements of Duqm as well as non-industrial requirements, prior to Royal Decree 79/2013. It is expected to be clarified this year whether PAEW will be responsible for the industrial water demands, whether OPWP will proceed with the IWP procurement, and if so, the capacity requirement for the plant, according to the annual report released by OPWP.

Extensive study
The annual report also said that OPWP has conducted an extensive coastal study across the country to identify potential suitable sites for power and water production over the next thirty years. A total of 56 sites have been short listed to now further be evaluated in accordance with relevant authority.

OPWP said it intends to implement new arrangements for the future procurement of power and water from independent power producers and independent power and water producers in Oman.

The principal features of the proposed new arrangements are the introduction of a 'spot market' for power, to operate alongside and in conjunction with the existing system of power purchase agreements (PPAs) and power and water purchase agreements (PWPAs). The implementation of a more flexible process for the awarding of new power purchase agreements and power and water purchase agreements by OPWP is aimed at increasing competition, including between new-build and existing plants.

The report noted that the Sur power plant, which is at an advanced stage of completion, is expected to be fully commissioned by the third quarter of 2014, adding a total of 2000 megawatt to contracted capacity.

To contact our reporter: businesseditor@timesofoman.com

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