Sembcorp-led JV to build Oman power and desalination plant
Singapore's Sembcorp Industries announced on 23 November 2009 that a joint venture formed between its fully-owned subsidiary Sembcorp Utilities and the Oman Investment Corporation (OIC) has won a 15-year contract to supply power and water to the government-owned Oman Power & Water Procurement Company.The joint venture, Sembcorp Salalah Power & Water Company, will be investing approximately US$ 1 billion to develop, build, own and operate the Salalah Independent Water & Power Plant (Salalah IWPP) in Oman.
SEPCO III Electric Power Construction Corporation of China is the engineering, procurement and construction contractor, under a fixed-price, date-certain turnkey contract, and Hydrochem, a wholly-owned subsidiary of Hyflux, also of Singapore, is the subcontractor for the seawater desalination plant.
Sembcorp Salalah Power & Water Company is 60% owned by Sembcorp Utilities and 40% by OIC, whose shareholders are the Gulf Investment Corporation, the National Investment Funds Company, State General Reserve Fund of the Sultanate of Oman and BankMuscat.
Targeted to begin full commercial operations in the first half of 2012, the Salalah IWPP will consist of a gas-fired power plant, which will have a net capacity of 445 MW and a seawater reverse-osmosis desalination plant which will produce 15 MIGD (68,000 m³/d) of water.
The facility will be operated and maintained by another Sembcorp/OIC joint venture company, Sembcorp Salalah O&M Company, in which 70% is owned by Sembcorp Utilities.