Oman’s Nama Group has received as many as 25 pre-qualification offers from 23 strategic investors, in response to its campaign to privatise its electricity transmission, distribution and supply companies.
The government-owned holding company is looking to divest up to 49 per cent of its shares in Oman Electricity Transmission Co (OETC) and 70 per cent of shares in Muscat Electricity Distribution Co (MEDC). Nama Holding conducted roadshows in Muscat and London in November 2018 to reach out to local and international investors, and contacted over 90 potential investors to promote the investment opportunities in both the companies.
Mansoor Talib Al Hinai, VP distribution and supply at Nama Group said, “A large number of institutions and companies had submitted their pre-qualification offers to participate in the privatisation process for the two companies. A total of 25 applications (14 targeted for MEDC and 11 for OETC) were received from 23 strategic and financial investors.”
Eng Omar bin Khalfan Al Wahaibi, CEO of Nama Group, said: “Privatisation of electricity sector companies is considered one of highest priorities of Nama Holding. Through this initiative, Nama Holding aims at enhancing the role of the Electricity Sector in the National Economy and helping in strengthening its position in international markets. Through privatisation, we are looking forward to attracting foreign direct investments, improving service efficiency, enhancing competitiveness and deploying advanced technologies and best practices in the sector. These strategies would enable the sector to improve customer service and enhance the competencies of the companies’ staff, and reduce the cost per unit of electricity supplied in the future.”
Previously, Nama had announced the privatisation plan of other distribution companies of the group such as Majan Electricity Company, Mazoon Electricity Company and Dhofar Power Company. The privatisation would be executed in collaboration with more than one strategic partners to benefit from their technical expertise.
Muhammed Nafie is an Assistant Editor at Oman Economic Review.