Officials at the Ministry of Electricity and Energy renewed talks with Al Kharafi Group to establish a power plant worth $1 billion to produce 750 MW, reported Al-Mal newspaper.
Talks over the location of the new plant are nearly finalized.
Discussions also included the sale price per KW from the new plant to the distribution companies, which will range between 4.5 and 5 cents, in light of the high operating and maintenance and fuel costs, Beltone Financial said in its daily market report.
The project is scheduled to be in 2011 to meet the expected deficit next year, which may reach 800 MW.
The investor is expected to bear the cost of gas at a price of $3 per mmbtu and the agreement with the government will be on BOO basis, Beltone said.
