Investing approximately US$1 billion, Sembcorp Salalah Power & Water Company will build, own and operate the Salalah Independent Water and Power Plant in Oman which is 60% owned by Sembcorp Utilities and 40% owned by the Oman Investment Corporation.

The power plant is expected to be operational in the first half of 2012 and will consist of a gas-fired power plant which will have a net capacity of 445 megawatts and a seawater desalination plant which will employ reverse osmosis technology to produce 15 million imperial gallons of water per day.

Planned as the largest and most energy-efficient power and water plant in the Governorate of Dhofar in Southern Oman, the entire electricity and water output from the facility will be sold under the 15-year power and water purchase agreement. The Salalah Independent Water and Power Plant will increase the power capacity in the Dhofar region from 321 megawatts to 766 megawatts, where demand is expected to double over the next six years.

Mr Tang Kin Fei, Sembcorp group president & CEO said: “We are pleased to have been selected by the Omani government to partner with them in this vital project. The award of this project recognises our expertise and track record as a leading energy and water player. Together with our partner, the Oman Investment Corporation, we are confident that we will be able to deliver the project successfully and play our part in helping to address the pressing energy and water needs of the region.”