ACWA Power consortium celebrates ground breaking of Phase 2 of Salalah Independent Power Plant

A consortium led by ACWA Power and Mitsui celebrated today the commencement of construction operations of Salalah IPP (Phase 2). The consortium signed an agreement with the Oman Power and Water Procurement Company (OPWP) on 25 May 2015 to develop Phase 2 of Salalah IPP, at a cost of 2.32 billion SAR (USD 620 million), which  will have a capacity of 445MW once fully operational.  

Thamer Al Sharhan, Managing Director ACWA Power said: “Today’s breaking of ground for the second phase of the Salah IPP reflects ACWA Power’s commitment to providing our customers with end to end power solutions swiftly; while holding true to our focus on both efficiency and sustainability.  Salalah 2 IPP is a key milestone in ACWA Power’s portfolio that reflects the company’s commitment in developing the Omani power and water sector, and provides job vacancies and train and develop Omani youth and workforce. ACWA Power is proud to have achieved 80% Omanization in its Baraka 1 power station since the acquisition happened in 2010 and we are keen with our partners to succeed in adding value to the Sultanate economy through our projects.”

Naif Alawiad, CEO Dhofar Generating Company, said “Oman has a reputation as a trendsetter in the region’s power and water sector, having pioneered the deregulation and liberalization of the industry to make it attractive for international developers to invest in this strategically vital sector. Salalah 2 IPP is a solid proof of Oman’s strident efforts to make energy production more efficient to meet the country’s industrial sector and growing population’s demand for energy.”

The new natural gas-fired combined cycle power plant – estimated at 2.33Billion Saudi Riyals ($6.23 Million USD) - will have an installed capacity of 445 MW and will be connected to the existing Salalah grid, generating a total capacity of 718 Megawatts. According to the , the consortium will acquire of the existing Dhofar Power Plant, which has an output of 273MW. Additionally, OPWP will have the right to buy the generated electricity over a period of 15 years. The plant is planned to be commercially operated by beginning of 2018.