06/09/2009 00:00 AST

With the Sultanate recently announcing plans to strengthen its power grid with RO3 billion of new projects over the next six years, several independent power producers (IPP) are keen to further tap this sector. Oman is the first country in the GCC to have invited IPPs to generate electricity in the Sultanate as early as in 1996. Since then, to meet rising power consumption in the Sultanate, the authorities have been inviting tenders from IPPs for new power plants as well as for the upgradation of the existing plants. The government had last month issued new tenders for Barka III and Sohar II power projects.

Seeking the co-operation of IPPs to produce electricity and water helps local governments not only to get foreign direct investments (FDIs) in the country but also brings in the latest technology and expertise to the country, Navneet Kasbekar, CEO of Al Kamil Power Company (AKPC), told Times of Oman. "Stringent requirement of Omanisation of important technical positions in such projects enables the imparting of requisite technical expertise and training to the young Omani engineers, which eventually enables them to fully operate the power plants. It was a very wise decision on the part of government to have invited IPPs in Oman."

"Oman is the first country in the GCC that embarked on the privatisation process by bringing-in IPPs. Global players are keen to bid for projects here. Whenever a new tender is announced you will find several international companies participating in the tendering process. Our parent company, the London-based International Power Plc, also participates in new power projects in the country."

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