The Oman Power and Water Procurement Company (OPWP)

Introduction to OPWP

The Oman Power and Water Procurement Company (OPWP) member of Nama Group is the single Buyer of power and water for all IPP/IWPP projects within the Sultanate of Oman. As part of the OPWP responsibility, the OPWP undertakes long term generation planning and publishes a 7 year statement. This statement includes the identification of new IPP/IWPP projects to be competitively tendered and developed by private sector entities, in order to meet the future power generation and water desalination requirements of the Sultanate of Oman. These projects are critical to the reliable and sustainable development of the power sector and indeed the economic development of Oman.

The Oman Power and Water Procurement Company (OPWP) is responsible for ensuring that there is sufficient electricity and water production capacity available at the lowest cost to meet the growing demands in the Sultanate of Oman.

The Oman power system is not fully interconnected. The largest part of the system, known as the MIS (Main Interconnected System) covers the northern part of the Sultanate. A smaller system owned by the Dhofar Power Company serves the Salalah area in the south and the rest of the country is supplied by the Rural Areas Electricity Company. PDO (Petroleum Development Oman) who are responsible for oil and gas exploration and production also own and operate their own power system and this is interconnected with the MIS and Salalah systems.

Article (74) of the Sector Law specifies the functions and duties of the Company as follows:

	To secure Production Capacity and Output to meet all reasonable demands for electricity in the Sultanate of Oman in coordination with the Rural Areas Electricity Company.

	To secure the production of Desalinated Water according to the maximum limit consistent with the Economic Purchase of Production Capacity and Output of Electricity and Desalinated Water.

	To cooperate with the Rural Areas Electricity Company in respect of forward planning for reasonable demand for electricity and New Capacity required thereof.

	To secure the procurement of Ancillary Services, when and in the manner required, in coordination with the Oman Electricity Transmission Company.

	To make Bulk Supply of Desalinated water to the Water Department of Public Authority for Electricity and Water (PAEW) in accordance with an agreement concluded for this purpose in which the consideration, conditions, and terms for such Bulk Supply are specified, and to secure the sale of de-mineralised water to other Persons.

	To make Bulk Supply of electricity to licensed Suppliers in consideration of a Bulk Supply Tariff and to secure adequate supplies of electricity is available to Licensees to enable them to meet all reasonable demand for electricity.

	To import or export electricity in accordance with the provisions of Article (1140) of the Sector Law.

	To meet the requirement for new capacity which the company strives to be designed, constructed, financed, owned and operated by local and foreign investors.

	The company shall in all cases abstain from discrimination or partiality, without due legal justification, between Persons, and comply with the general policy of the state when undertaking the functions assigned to it pursuant to the Sector Law particularly those relating to the price and use of fuel.