Dhofar Generating Company - Salalah, Oman

Dhofar Generating Company (‘DGC’ or ‘the Company’) owns and operates the Salalah II IPP project. The project comprises of two power generation plants with a combined contracted capacity of 718 MW, located at Raysut in the Dhofar Governorate of the Sultanate of Oman.

The Original Plant, which commenced commercial operations in 2003 has a contracted capacity of 273 MW. A New Plant was developed by DGC with a capacity of 445 MW and has commenced commercial operations on January 1, 2018. Together, the total contracted power capacity represents approximately 62% of the total contracted capacity in the Dhofar Power System.

DGC currently generates its revenues pursuant to a 15-year Power Purchase Agreement (‘PPA’) with Oman Power And Water Procurement Company SAOC (‘OPWP’), maturing on 1 January 2033. The power capacity of the Plant is fully contracted to OPWP and is being used to meet the growing power demand in the Dhofar Governorate. A consortium (‘the Founders’  

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or ‘the Promoters’ or ‘the Consortium’) comprising of Mitsui & Co., Ltd., ACWA Power and DIDIC acquired the Company on 4 June 2015.

History
In 2001, Dhofar Power Company SAOC (‘DPC’), DGC and the Ministry of Housing, Electricity & Water of Oman entered into the Salalah Concession Agreement, a 20-year concession. Under this agreement, DPC became the vertically integrated sole electricity transmission, distribution and supply company within its concession area. DGC was a fully owned subsidiary of DPC. This agreement was terminated on 31 December 2013, and all generation activities and assets within the DPC group were transferred to DGC which became a stand-alone entity. DPC’s shares in DGC were purchased by EHC (Electricity Holding Company) and MoF (Ministry of Finance).

In 2014, the Government invited proposals for the acquisition of all shares in DGC, which then owned the Original Plant, located at Raysut, and the development of the New Plant in an adjacent site. Following a competitive bidding process run by OPWP, the Consortium was awarded the contract to acquire DGC, operate the Original Plant and build the New Plant.

The project has been established under a BOO (Build, Own & Operate) scheme, which enables it to be operated beyond the PPA term of 15 years by extending the PPA (if agreed to by OPWP) or by selling electricity to potential customers should a merchant market exist in the Dhofar region at that time.