EHC Awards Contract for Study of Muscat Electricity Distribution Company Privatization
Electricity Holding Company (EHC), the holding company of a government-owned group of companies engaged in the generation, transmission, distribution, supply and procurement of electricity in Oman, announced a plan earlier last year to float a public tender to issue the Request for Proposal (RFP) to undertake the strategic study for the privatization of Muscat Electricity Distribution Company (MEDC), a subsidiary of EHC, as per the directives of the Government represented by the Ministry of Finance (MOF) and the Public Authority for Electricity and Water (PAEW).
Following the evaluation of the proposals received, the contract was awarded to a consortium of Advisors led by “CPCS Transcom International Limited” based in Canada, who has a wealth of experience in handling similar consultations across the globe. The group of Consultants are expected to commence the Study this month.
The purpose of the study is to explore privatization options and to assess the readiness of MEDC for privatization. The objectives of MEDC Privatization is to promote private sector participation in the nation building process and to enhance the value for staff, customers and shareholders.
MEDC is a joint stock Omani company which was formed as a result of the restructuring of the electricity and related water sector under the Sector Law promulgated by Royal Decree in 2004. MEDC is licensed by Authority for Electricity Regulation (AER) for the distribution and supply of electricity in Muscat Governorate.