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Oman's Nama signs new purchase agreements with four power and desalination plants

  • Oman's Nama signs new purchase agreements with four power and desalination plants

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Nama Power and Water Procurement Company,  the exclusive procurer of all electricity and desalination projects in the Sultanate of Oman, has signed new power and water purchase agreements with four power and desalination plants.

This follows the issuance of the 2024 Electricity and Water Procurement Tender last year, which invited competitive bids from numerous existing plants facing contract expirations.

The tender offered an opportunity for these plants to secure new contracts with Nama, ensuring continued supply of electricity and water. These agreements are pivotal in meeting the increasing demand for power and desalinated water, reinforcing the main electricity network and water supply systems across the Sultanate.

The newly signed agreements collectively provide over 1500 MW of electricity and 200,000 cubic meters of desalinated water per day. The involved facilities include Barka 1 Power and Water Plant, Barka 2 Power and Water Plant, Al Rusail Power Plant, and Manah Power Plant, with contract durations extending up to nine years.

Acting CEO of Nama Power and Water Procurement Company, Ahmed Salem Mohammed Al Abri, emphasized the strategic importance of these deals, stating, “The signing of these agreements establishes a new phase of constructive collaboration between the public and private sectors and strengthens the confidence of developers, financiers and owners of electricity production and desalination plants in the electricity and water sector in the Sultanate of Oman. The total contracted capacity of these agreements exceeds 1500 MW of electricity and 200 thousand cubic meters per day of desalinated water from four plants, namely Barka 1 Power and Water Plant, Barka 2 Power and Water Plant, Al Rusail Power Plant and Manah Power Plant. The duration of these agreements is up to nine years.” 

The agreements aim to lower energy provision costs, boost investor confidence in the Muscat Stock Exchange, and attract international investment for future power and desalination projects. Nama, as the exclusive procurer of all electricity and desalination projects in Oman, is also advancing renewable energy initiatives in alignment with Oman Vision 2040 and the nation's goal of achieving net-zero emissions by 2050.

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