A multinational team of advisers has helped develop a concept for a new operational structure through which water and wastewater infrastructure and services will be delivered throughout Oman, according to a top official of Nama Holding (formerly The Electricity Holding Company).
Hassan Mohammed al Lawati, Chairman, stated the conceptualisation study was led by Maxwell Stamp PLC, the well-known London-based independent firm specialising in the provision of world- class economics and related consulting services to public and private sector organisations around the globe.
The appointments were made in 2016 in response to a request from the Public Authority for Electricity and Water (PAEW), which has tasked Nama Holding with overseeing the landmark exercise for restructuring the water and wastewater sector in the Sultanate.
“In 2016, (Nama Holding), at the request of PAEW, appointed the consulting economists Maxwell Stamp, supported by a French engineering consultancy and an Omani law firm, to advise on the ‘Design of a New Operational Structure for the Water and Wastewater Sector and Development of a Plan to implement the New Structure’,” said Al Lawati.
“Under NH’s management, Maxwell Stamp worked with all key stakeholders in the water and wastewater sector to develop a concept for a new operational structure through which water and wastewater infrastructure and services will be delivered throughout Oman,” he added in the Chairman’s Report prefacing Nama Holding’s Annual Report for 2016 published on its website on Wednesday.
Significantly, Nama Holding has also completed the study into a proposal for the privatisation of Muscat Electricity Distribution Company (MEDC), one of nine subsidiaries of Nama Group.
“Based on a request from the Public Authority for Electricity & Water (PAEW), and as per the directives from the Ministry of Finance, (Nama Holding) have completed the study of MEDC’s Privatisation in 2016 which presented a review of the technical, financial and legal due diligence,” the Chairman said. Among other highlights of the past year, Nama Group successfully delivered on a number of financing objectives set out in its Lamar Project launched in 2014, Al Lawati said. The project was aimed at raising long-term funding to support the Group’s capital expenditure and transmission network, as well as to refinance the existing short-term borrowings.
Tranche 1 of the fund-raising for a total amount of RO 1.022 billion was successfully completed last year. It includes the successful raising of the equivalent of RO 795 million in the bonds and loan market as funding for Oman Electricity Transmission Company (OETC), Muscat Electricity Distribution Company (MEDC) and Mazoon Electricity Company (MZEC), an exercise that was completed in 2015. Completing Tranche 1 was the raising, in 2016, of the equivalent of RO 227 million in funding for Majan Electricity Company (RO 127 million) and Dhofar Power Co (RO 100 million).
Also in 2016, Nama Holding floated a tender to appoint arrangers and advisers for Tranche II fund-raising to raise a combined estimated amount of RO 750m for the same companies that participated in Tranche I and in addition to Rural Areas Electricity Company, said Al Lawati.
“The arrangers and advisers are required to advise and execute the strategy covering the funding quantum, sources, markets, tenors and associated requirements to support the capital expenditure programme of the borrowers for the years 2017 and 2018. Nama Holding successfully refinanced RO 100 million short term loan facility for RAECO for a period of 6+3 months, to be refinanced by the long-term fund-raising planned under Tranche II,” he said.
Conrad Prabhu
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