AES wins $425M contract to build Oman power plant

ARLINGTON, Virginia, Nov. 27, 2000 (Bloomberg) — AES Corp., the largest U.S. power-plant developer, won a contract from Oman to build a $425 million electricity and water plant.

AES will sell 427 megawatts of electricity and 20 million gallons of desalinated water a day to the Persian Gulf sultanate from the plant for 15 years, the company said in a statement. It’s the company’s first major water-supply transaction.

Oman will sell natural gas to AES to fuel the facility. Construction is scheduled to start in April.

AES owns 90 percent of the project and will run the plants. Oman’s Bahwan Group owns the rest. AES will sell 39 percent to the public by the end of the first year of operation. The plant is expected to open in April 2003.

In the past few years, Oman has changed its laws to allow international investors to hold majority stakes in Omani companies.

Enelpower of Italy and Hitachi Zosen Corp. of Japan will build the facility near the town of Barka.

Shares of Arlington, Virginia-based AES rose 69 cents to $56.56.

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