YOG INFRA Q2 2023 insights
OMAN is taking significant steps for development of complete ecosystem of green hydrogen and green ammonia in the country, with the help of international developers. While the country has shown strong committment to energy transition, there is a conitnued need to build technical capability for such emerging technologies. QATAR has taken policy initatives to promote use of PPPs for infrastructure projects, with a focus on WASH, urban infra and digital infra sectors.
Read the latest developments in Infrastructure and PPPs in the two countries in our latst insight.
Oman
OMAN COLLECTS MARKET VIEWS FOR NEW HYDROGEN TRANSPORT TENDER
Oman's government is conducting a market sounding and preparing an international tender to boost the use of hydrogen energy for its transport system. To better design the auction, the Ministry of Transport, Communications and Information Technology (MTCIT) has recently sounded out companies in China and other countries that have an interest in co-developing hydrogen projects to power heavy trucks in Oman.
This development came after Oman launched its first green hydrogen auction seeking developers delivering integrated projects covering the full green hydrogen value chain. Preferred companies that the MTCIT attempts to engage in market sounding are those that have relevant industry experience. They will be expected to provide the Oman government with information on the use of EPC and Design-Build-Operate-Own-Maintain modes to push forward the use of hydrogen energy for heavy trucks.
The information could also involve equipment procurement as well as the development of feasible business models. After collecting market views, the Oman authorities will have a better understanding of the market and look to launch an official international tender.
OMAN LAUNCHES RFPs FOR PROJECT MANAGEMENT AND SUPERVISION OF 1 GW SOLAR PLANTS
The Sultanate gets its transition to alternative energy underway, with plans for the nation’s largest solar installation.The Oman Power and Water Procurement Company (OPWP) is sourcing requests for proposal (RFPs) from interested bidders to provide project management and supervisory consultancy services for its key solar PV projects: Manah I and Manah II.
The large-scale Manah independent power projects (IPP) is to be set up on a 15 Mn sqm area within the Governorate of A’Dakhiliyah, and will jointly produce a total 1,000 MW of power. It is expected that over 2 Mn solar panels will be installed in these two stations, which will be the largest solar panel project for the sultanate. Oman has already declared that solar power should play a major role in its transition towards largely alternative energy sources by 2035.
CIP CONSORTIUM AWARDED 4.5 GW OMAN HYDROGEN PROJECT
A consortium led by Copenhagen Infrastructure Partners (CIP) has been awarded a 4.5 GW hydrogen project in the first round of Oman’s inaugural green hydrogen auction. Hydrom, Oman’s green hydrogen development and procurement authority, has awarded the consortium the rights to develop a hydrogen plant in the Duqm area.
Under the agreement the consortium, which also includes Danish renewables developer Blue Power Partners and Omani logistics firm Al Khadra, will develop a 4.5 GW green hydrogen plant in the Special Economic Zone of Duqm. The new facility will produce 200,000 tonnes of green hydrogen a year.
ENGIE AND POSCO-LED CONSORTIUM WINS OMAN GREEN AMMONIA CONTRACT
A consortium led by French energy group Engie and South Korean steelmaker POSCO has won a contract to develop a 1.2 MTPA green ammonia project in Oman. The other members in the group are Samsung Engineering, Korea East-West Power, Korea Southern Power and Thai state-run oil firm PTTEP’s subsidiary Future Tech Energy Ventures Company.
The concession for the Z1-02 block was awarded by Hydrom, Oman’s green hydrogen development and procurement authority. Spanning 340 sq km, Z1-02 is located in Duqm, with the project requiring downstream elements to be established at the Port of Duqm.
The development will include a total renewable energy capacity of approximately 5 GW, which comprises wind and solar power, in addition to battery energy storage and a plant that will produce 200 ktpa of green hydrogen. The fuel will be transported by a pipeline to the Special Economic Zone at Duqm where it will be converted into approximately 1.2 mtpa of green ammonia for export.
The concession is for 47 years, broken down into a 7-year development and construction phase, followed by a 40-year operational period, and is effective within a month of the contract signing. Construction is projected to begin in 2027, with the first shipment of green ammonia to Korea planned for the second half of 2030.
OMAN SET TO LAUNCH USD 103 MN INTEGRATED ENTERTAINMENT PROJECT
Oman is launching an integrated entertainment project, Spray Boulevard, at an investment of OMR 40 Mn (USD 103 Mn) in Salalah, which will cater to both locals and tourists, adding value as an outlet for tourists and residents in the governorate.
Spread over a 470,000-sq-m area, the project, which will be implemented on a public-private-partnership (PPP) will boast waterfront restaurants, a grand market, suspended walkways and a botanical garden in addition to suspended walkways, theatres and venue for specialised exhibitions and events. The Ministry of Finance will provide OMR 10 Mn (USD 25.97 Mn) funding for the first phase of infrastructure and related services while the rest will be financed by private sector institutions.
Qatar
ASHGHAL AWARDS QATAR’S FIRST SEWAGE TREATMENT PPP PROJECT TO CONSORTIUM METITO
Qatar’s ‘Ashghal’ awarded the Consortium Metito, Al Attiyah Motors & Trading Company, and Gulf Investment Corporation (GIC), the contract for the development, design, build, finance, and procurement for the country’s first 150,000 cbm/day sewage treatment works (STW) project under a Public-Private Partnership (PPP) agreement.
The QAR 5.4 Bn (USD 1.48 Bn) project, located in the areas of Al Wakrah and Al Wukair, marks the country’s first sewage treatment PPP project.
QATAR CHAMBER REITERATES ROLE IN ENHANCING PPP, ECONOMIC GROWTH
Qatar Chamber will regularly host joint meetings with different stakeholders and major players in the private and public sectors to enhance partnerships aimed at promoting the economic growth strategy of the State. The joint meeting hosted by Qatar Chamber between different officials from the Ministry of Interior (MoI), Ministry of Commerce and Industry (MoCI), Ministry of Labour (MoL), and Qatar Development Bank (QDB) represented an essential forum to discuss various issues and obstacles facing the private sector and the appropriate solutions.
The meeting has put emphasis on the real cooperation between the public and private sectors for the advantage of the national economy.
QATAR’S ROBUST DIGITAL INFRASTRUCTURE OFFERS GROWTH OPPORTUNITIES
By establishing a robust digital infrastructure and leveraging cutting-edge technology, the country aims to enhance economic and productivity growth. Qatar is moving to make itself a smart city with lot of initiatives especially focusing on sustainability.
Qatar is promoting initiatives that are in line with Qatar National Vision 2030 and running towards the vision which is much beyond that.
List of Key Transactions - Oman Q2-2023
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