Muscat: Oman has awarded a $1.7 billion contract for the construction of two power projects to a consortium.
The contract was awarded to the Kahrabel GDF Suez Group, Bahwan Engineering Group, Oman; the Public Authority for Social Insurance (PASI), Oman; and Shikoku Electric Company and Sojitz Corporation, Japan.
The Barka 3 and Sohar 2 are greenfield natural gas-fired power plants with a capacity of 744 megawatts each.
The electricity will be sold under a 15-year power purchase agreement to the Oman Power and Water Procurement Company.
The partners bidded with a consortium of Germany's Siemens AG and GS Engineering of South Korea as their EPC contractor.
Kahrabel GDF Suez Group CEO Shankar Krishnamoorthy said: "We are proud that, with these two new projects, Kahrabel GDF Suez Group will be able to continue contributing to the country's growth and development in a strong partnership with Bahwan Engineering Group, which for several decades has been associated with Oman's nation-building projects."
"This is also the country where our group, in 1994, laid the foundations for its successful development of IPP projects in the Gulf area," he said.
"We have always been at the forefront in response to privatisation initiatives promoted by His Majesty's government.
"These two projects will give us greater opportunities to participate in the nation's drive towards privatisation and fulfill our commitment to harness the immense potential of Omani youth."
