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SINGAPORE’S Sembcorp Industries has formed a joint venture with Oman Investment to spend $1b on developing, building, and operating a power plant and desalination plant in Oman.

Proposals for the Salalah Independent Water and Power plant consist of a 445 MW gas-fired power plant and a 57,000 m³/d reverse osmosis desalination plant. Both are scheduled to begin operations in 2012 and have a 15-year contract to supply power and water to the state.

The facility will more than  double the Dhofar region’s power capacity to 766 MW and Tang Kin Fei, Sembcorp ceo says he is confident the project will help address the pressing energy and water needs, as demand is projected to increase two-fold in the coming six years. The company expects its contract to operate the plants will be extended beyond the initial 15-year period.

Sembcorp has announced that SEPCO III Electric Power Construction has been awarded the fixed-price, date-certain engineering, procurement, and construction contract for the power plant, and Hydrochem, a wholly-owned subsidiary of Hyflux is the sub-contractor for the desalination plant.

The joint venture Sambcorp Salalah Power & Water is 60% owned by Sempcorp Utilities and 40% owned by Oman Investment.