Energy, Oil & Gas

Chinese contractor wins construction packages for $910m Oman IPP project

MUSCAT
Chinese contractor wins construction packages for $910m Oman IPP project

Construction activity is gathering pace at Oman’s 890-megawatt Duqm power project, with China Eleventh Chemical Construction Company securing two packages covering civil works and temporary site facilities. The planned commercial operations are set for 2029.

An independent power project, Duqm IPP is being set up by Coastal Power SAOC at an investment of $910 million in Oman. 

The Chinese contractor was selected for Package H of the civil works under the Duqm 890 MW combined-cycle gas turbine EPC project, reported Oman Observer, citing procurement result published last week.

The procurement and evaluation process has been completed and the successful contractor selected, according to the award notice issued by Power Construction Corporation of China's Oman branch. The value of the package was not disclosed.

A second award was snapped up by China Eleventh Chemical Construction for temporary material warehousing and office facilities at the project site. The scope also includes ground works, monitoring and lighting installations. 

The awards point to further progress on the project after Coastal Power formally began construction of the power station in September.

It is being developed by a consortium comprising Korea Western Power, Qatar’s Nebras Energy, UAE-based Etihad Water and Electricity and Oman’s Bahwan Infrastructure Services.

Nama Power and Water Procurement Company awarded the independent power project earlier this year as Oman seeks to increase firm generation capacity alongside the expansion of renewable power.

The main EPC work involves China's SepcoIII, part of PowerChina, and South Korea's Doosan Enerbility. Doosan disclosed in June that its portion of the EPC contract was worth about $385 million.