Duqm power project receives good response

By V L Srinivasan

Muscat, Dec 29: More than four dozen companies have shown interest in setting up the 1,000MW coal-fired power project in Duqm, some 600km from Muscat, next to an pcoming port at the same place, on the east coast of Oman.

Enthused by the response, officials are now planning to issue the Request for Qualification (RFQ) for the project (being taken up on a Build, Own and Operate basis) in April 2010, with early power expected in April 2015 and the full commissioning by January 2016.

"We have received 50 Letters of Interest (LoI) from various parties before the close of deadline on December 10 and the responses are being assessed," sources told Muscat Daily.

However, they said that there is no cost or commitment involved to register interest and it would be no obstacle to parties being involved who have not registered interest at the initial stage.

"This is a non-binding market awareness and feedback exercise and the real pulse will be felt when the parties avail RFQ in April next year," the sources added.

As far as finances are concerned, the approach would be along similar lines to the previous Independent Water and Power Projects (IWPPs), subject only to required variations for the fact that the fuel is not gas but coal, which has to be secured from overseas markets.

“Private financing involving equity, banks and export credit agencies is expected with a requirement to go public within a set time frame,” sources said.

The coal-based power project will be the first of its kind in the Middle East and would be connected to the Main Interconnected System (MIS) which serves around half a million consumers in the Muscat and Buraimi governerates, besides large parts of South and North Batinah, Dakhliyah, Sharqiyah and Dhahirah regions.

Coal being the raw material, the government is exploring the possibility of importing it from Australia, South Africa or Indonesia and supply it to the developer. It is also considering both - sub and super critical boiler technologies for the project.