Nama announces privatisation of OETC, MEDC

Muscat: Nama Holding will launch of the privatization programme for its electricity transmission and distribution companies, the announcement for which was made by Dr  Mansoor bin Taleb al Hinai, vice president- distribution and supply at Nama Group.

Al Hinai announced the partial privatization of the transmission company and one of the distribution companies through international strategic partner. He announced the sale of up to 49 per cent of Nama Holding shares in Oman Electricity Transmission Company (OETC), and the sale up to 70 per cent of Nama Holding shares in its distribution and supply companies respectively: Muscat Electricity Distribution Company (MEDC), Majan Electricity Distribution Company (MJEC), Mazoon Electricity Distribution Company (MZEC), and Dhofar Power Company (DPC).

He added that OETC and MEDC, currently being considered for privatization, and the other three distribution and supply companies listed above currently operate as fully-owned subsidiaries of Nama Holding.

Saud bin Nasser al Shukaili, secretary general of taxation and chairperson of privatization steering committee, said, “The government, through the privatization programme, aims to tap private sector investment and promote private sector participation in nation building process. It also aims to attract and retain Foreign Direct Investment (FDI) into the Sultanate to benefit from its technical and administrative expertise and modern technology, which will reflect in the improvement of customer service, resource utilization and reduce cost per unit of electricity supplied, over time.”

Eng Omar bin Khalfan al Wahaibi, CEO, Nama Group, said, “The privatization of Electricity Companies is part of Nama Group’s strategy to attract international investments. The investment with a strategic partner will enhance the role of the electricity sector in Oman’s economy and will promote the sector’s position in the global market. The privatized companies will benefit from the global management expertise that will contribute to raise the efficiency of the service provided to customers”.

Al Hinai announced that Nama Holding now intends to invite ligible entities, either individually or in consortia, to express interest to participate in the partial divestment of OETC and MEDC through Nama.