Transcript H.E. Mohammed Bin Abdulla Al Mahrouqi, Chairman, Public

Oman Economic Forum
Shangri La’s Resort
13-14 April 2008
Investment opportunity in the
Electricity and Related Water
sector”
“
Mohammed Al-Mahrouqi
Chairman
Public Authority for Electricity & Water
Sultanate of Oman
March 2005
1
Presentation Outline

New Regulatory Framework

Private sector participation in the
Electricity and related water projects

New opportunities in the sector.
Slide - 2 -
New Regulatory Framework
Key Law:
• Royal Decree No. 78/2004
1.
Sector Law
• Law for the Regulation and Privatization of
the Electricity and Related Water Sector
• Official Gazette #772, August 1st, 2004
•Transfer Scheme
 Intended to promote:
 private sector participation
 competition
 All generation, transmission & distribution privatized
 High level of transparency in the business
 Independent “Authority for Electricity Regulation, Oman”
 Official start date: May 1st, 2005
Slide - 3 -
New Industry Structure - Ownership
Ministry of Finance
Denotes 100 per
cent ownership
After privatisation
Electricity Holding Company
Rusail
Distribution
Wadi Jizzi
Manah
Supply
(Muscat)
Power & Water
Procurement
Company
Al Kamil
Distribution
Barka I
Sohar
Supply
(Mazoon)
Transmission
& Dispatch
Company
Ghubrah
Distribution
Salalah Power System
Integrated Concession
Supply
(Majan)
Barka II
C
U
S
T
O
M
E
R
S
Rural Areas Electricity Company
Generation &
Desalination
Distribution
Supply
Slide - 4 -
Privatization Trend
Project
Type
Output
Awarded
Lead Developer
Manah – Phase 1
Gas OCGT
90 MW
1994
Tractebel
Manah – Phase 2
Gas OCGT
190 MW
1999
Tractebel
Al Kamil
Gas OCGT
285 MW
2000
Int. Power
Barka
Gas CCGT:
MFS:
427 MW
20 mgd
2000
AES
Salalah
Integrated
Utility
240 MW
2001
PSEG
Gas CCGT:
MFS:
585 MW
33 mgd
2004
Tractebel
Sohar
Barka II
Gas CCGT:
RO:
677 MW
26 mgd
Rusail
Gas OCGT
684 MW
2009
2007
Tractebel
Tractebel
Slide - 5 -
Privatization Trend in Oman
2,489 MW
Private Investment
Total:
2, 384M USD
Foreign: 1,700M USD
2000
Installed
Capacity
Megawatts
Barka 2 IWPP + 26 MGD
1,812 MW
Sohar IWPP + 33 MGD
Privatization Trend
1,227 MW
Salalah Power
Concession (BOOT)
1000
Barka IWPP + 20 MGD
560 MW
270 MW
Al Kamil IPP
90 MW
Phase 2 – Manah IPP
Phase 1 – Manah IPP
‘96
‘00
‘02
‘03
‘07
‘09
Year
Slide - 6 -
Market Reaction
Four Power Companies on Muscat Securities Market:
United
Power
Company
Kamil
Power
Company
AES Barka
Power Company
Dhofar
Power
Company
Dec 1994
Aug 2004
Dec 2004
April 2005
1.000
1.710
0.980
1.420
High
1.390
1.760
1.940
2.4
Low
0.780
1.580
1.760
1.8
IPO Issue Date
Issue Price
Price Range
(52 weeks)
Prices quoted are in Rial Omanis (RO).
Price range as of Dec, 2007
Slide - 7 -
Why Invest in Oman
Four Major Reasons:
1.
Investment Climate
 Continues to be attractive
 Foreign investment welcomed
2.
Market Liberalization
 Progressing very well
 Demonstrated commitment
3.
Power Load Growth
 6% to 8% last 3 yrs
 More opportunities
4.
Solid Infrastructure
 Comprehensive restructuring
 Secure gas supply
New Project
New Independent
Salalah
North
Gubrah
Doqum
Water & Power Project
2010
2011
2012
2015
Slide - 8 -
New Project
New
Salalah
IWPP
New Green
Field I(W)PP
ReDevelopment
Of Al Ghubrah
New IWPP in
Duqum
• 370 to 430 MW
• 15+ million gallons/day
• Location in Taqah
• Apr ‘11 COD
• Early Power in ‘10
• 750 to 1000 MW
• Not Confirmed Barka or Sohar
• 2011 - 2012
• Additional up to 500 MW
• 25 MIGD
• Ghubrah
• 2011 - 2012
• Up to 1000 MW
• Water Capacity (to br
confirmed)
• Doqum
• 2014 - 2015
Slide - 9 -
THANK YOU
Slide - 10 -