Muscat Daily reported that three IPOs are expected in the power sector by 2013 as companies developing the projects hit their 4 year IPO deadlines.

Bob Whitelaw CEO of Oman Power and Water Procurement revealed that the Sur IPP development company, Phoenix Power will have its IPO in April, while Barka-3 developers Al Suwaidi Power Company and Al Batinah Power Company, the developers of Sohar-2 will run their IPOs in April 2013. All three companies will float 35% of their shares, as per Authority for Electricity Regulation conditions.

Mr Whitelaw said that if the IPOs are unsuccessful, the government can step in to buy the stake and re sell it when market conditions improve. From the time we sign the contract, we have 4 year period before the obligation to issue the IPO. Once you hit that timetable you must issue the IPO and then there is an obligation for three subsequent years if it is unsuccessful.

He said that if it is still not successful after the three years the government, through the Electricity Holding Company, can buy up the unsold shares with a view to waiting until market conditions are right.

Mr Whitelaw also outlined plans for independent water projects in Suwaiq and Quriyat as well as a power project at Duqm which could still be extended to include an independent water project component. With a planned capacity of 50mn imperial gallons per daybids for the Suwaiq project are expected by the Q1 of 2014.

Bids for the 40MIGD Quriyat plant are anticipated by the first quarter of 2014. Studies are ongoing for the Duqm project with a projected capacity of up to 200MW if it is intended to serve just the Duqm area and up to 1,000MW if it is to be hooked up to the Main Interconnected System.

(Sourced from Muscat Daily)