The Oman Power and Water Procurement Company (“PWP” or “Company”) was incorporated by articles of incorporation on Oct 1st, 2002 under the Commercial Companies Law No. 4/74, and amendments thereto, of Oman. The PWP is a wholly owned subsidiary of the Electricity Holding Company (“EHC”) that in turn is 100% owned by the Government of the Sultanate of Oman.

The functions and general duties of the PWP are described in Part III Chapter II Article (74) of the Sector Law. Further direction is provided in Articles (75) to (81), inclusive in Part III Chapter II. Its obligations with respect to the Salalah Project Agreements are made explicit in Part VIII Articles (149) to (153), inclusive. In short, the PWP is responsible to:

1. Ensure sufficient production capacity and output (“Electricity”) is available in Oman to meet all reasonable demand for electricity, and, where economically feasible, to ensure that Desalinated Water (“Water”) is produced in conjunction with electricity to the maximum extent. These activities must be co-ordinated with the Rural Areas Electricity Company (“RAEC”) and the Water Department at the Ministry of Electricity, Housing and Water (“MHEW”) or its successor entity.
2. Forecast the demand for electricity within Oman for purposes of planning new and replacement capacity in cooperation with RAEC.
3. Secure new capacity and output as and when needed.
4. Procure Ancillary Services as and when needed, in coordination with the Oman Electricity Transmission Company (“Transco”).
5. Procure Production, Capacity, Ancillary Services and Output on an Economic Purchase Basis.
6. To ensure that the requirement for New Capacity is designed, built, financed, owned and operated through private sector funds.
7. Bulk Supply electricity to Licensed Suppliers, charging a Bulk Supply Tariff.
8. Bulk Supply Water to the MHEW, charging a Bulk Supply Tariff and selling de-mineralized water to others.
9. Ensure sufficient supplies of electricity to Licensed Suppliers to meet reasonable demands for electricity in Oman.
10. Import electricity when permitted to by the Regulatory Authority (“RA”).
11. Export electricity when permitted to by the RA.
12. Manage all Salalah Project Agreements.
13. Treat all Persons in an equitable and fair manner.