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27 July 2004 - Oman's government has moved forward with its plan to privatise the electricity and water industries in the gulf country by passing a sector law under an all-embracing umbrella privatisation law passed earlier in the week.

The new law will see the sale of the sale of the three state-owned generating plants at Rusayl, Wadi Jizzi and Ghabrah, completing the privatisation of the sultanate's generation assets. Generation will be unbundled from transmission and distribution, for which holding companies will also be formed and sold off.

Oman already has privately-owned and operated generation facilities run by the Barka and Al-Kamil project companies. A consortium led by Belgium's Tractebel was recently awarded the contact for a new independent water and power project (IWPP). The Sohar project consists of a 585 MW Combined Cycle Gas Turbines plant and a 33 million imperial gallons a day (6250 cubic meters per hour) water desalination plant.

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