Al-Duqum Independent Water and Power Project

The Al-Duqum Independent Water and Power Project (Al-Duqum IWPP) is a proposed 1,000 megawatt (MW) coal-fired power station associated with a desalination plant. The project has been proposed by Oman Power and Water Procurement Company, a wholly owned subsidiary of the Electricity Holding Company (EHC) which in turn is 100% owned by the Government of the Sultanate of Oman.

Oman Power and Water Procurement Company has made significant progress with the awarding of the technical and financial advisory contracts: the technical advisory contract has been awarded to the Australian company, WorleyParsons, and the financial advisory contract has gone to KPMG. Al-Duqum IWPP will be the first coal-fired power plant in the country, and one of the first in the Gulf region. The Al-Duqum IWPP is estimated to cost US $2 billion to build, and is proposed that it would come online in 2015.

Oman Power and Water Procurement Company state that coal is the preferred as an option as an alternative to rising gas prices and as a means to diversifying fuel sources within the power generation supply. The company is aiming to issue a request for a proposal from a private investor in the second quarter of 2010 and finalise a contract by the end of 2010.

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