demand increase from just over 5 GW in 2014 to around 15 GW in 2029 after the PPA expires. The future capacity mix for the MIS from
our market modelling is expected to be dominated by a combination of new gas-fired combined cycle gas turbines (CCGT) and open
cycle gas turbines (OCGT), indicating a significant investment opportunity in Oman's power generation sector for these plant types. With
existing plants and known new builds insufficient to cover demand in the post-PPA period, we concluded that Sur IPP is likely to have
significant residual value in the market after the expiry of its PPA.
commissioning a new plant, or that Phoenix would be able to realize almost equivalent net revenues on the merchant wholesale
market from that time. Our forecasts were included in the IPO prospectus prepared by the issue manager, Bank Muscat, in May 2015.
2015 and was heavily oversubscribed, attracting over $2.6 billion
in bids from investors. Its offer was the first public share sale in
Oman since the June 2014 flotations of Al Suwadi Power Co and
Al Batinah Power Co (both of which IPA also supported with post-
PPA valuations), a verified success for our client and an indication
of strong investor confidence in the resilience and potential of
Oman's power sector in the long-term.