Saudi’s ACWA Power inaugurated on Thursday the commercial operation of the Salalah 2 Independent Power Plant holding a 445 MW capacity and standing at an approximate investment of US $ 465 million.
“We are pleased to launch the Salalah 2 IPP project, a significant milestone which adds to our portfolio in Oman. The project has enhanced the efficiency of Oman’s power grid, and 23 percent of the project budget was allocated to local companies and contractors, contributing significantly to the local value chain. The project’s completion was achieved with the support of engineers and technicians from Oman,” said ACWA Power International Managing Director Thamer S. Al-Sharhan.
Sharhan said that the power plant project boosts the ACWA value within Oman's growing economic GDP, as well as enhances local content and value chains attached to the project.
The project allocated 23% of its investment cost to hiring local companies for the implementation process and requirements.
“We are pleased to have achieved commercial operations ahead of schedule and to begin to supply much needed additional power to the region,” ACWA Power president & CEO Paddy Padmanathan said.
“Power demand in Oman is rapidly increasing and we look forward to continuing our work with OPWP and our partners to reliably and cost-effectively deliver power in Oman,” he added.
The power plant is located in the Salalah Industrial Area in Raysut, Dhofar Governorate. It was developed by a syndicate made up of ACWA Power, Mitsui and Dhofar International Development and Investment (DIDIC).
“The Salalah 2 Independent Power Plant contributes to the development of the local community and meets the steady increase in industrial, economic and social activity in the province and the Sultanate as a whole,” Dhofar Generating Company CEO Naef bin Mohammad Al-Awaed said.
Awaed claims that the Salalah 2 power plant will help in drawing more investment to the region in multiple sectors like import and export, infrastructure construction and other projects that need a lot of electricity.
The new power plant will also boost electricity supply in Dhofar, in line with the pace of urban expansion in the province, said Awaed.
