Barka Water & Power Commences Early Power at Full Plant Capacity of Barka 1 IWPP

Publicly-traded company Barka Water and Power, owner and operator of Barka 1 Independent Water & Power Project (IWPP) announced the commencement of early power generation at full plant capacity. This milestone was communicated to the Financial Services Authority, the Muscat Stock Exchange (MSX), and the investors’ community on Sunday. The achievement follows the Company's earlier disclosure dated April 24, 2024, which detailed the receipt of a letter of award from Nama Power and Water Procurement Company (PWP) for a new Power and Water Purchase Agreement (PWPA). Barka Water and Power confirmed that it met the early power conditions and notified PWP of the plant's readiness for full dispatch capacity of 412 MW on June 13, 2024. This development is poised to significantly bolster the region's power supply, addressing increasing energy demands and supporting economic growth.

The awarded PWPA outlines a comprehensive agreement that includes an eight-year and nine-month term for the power plant operations, which commenced on June 1, 2024. Additionally, the agreement encompasses a multi-stage flash evaporator (MSFE) water plant that will begin operations on September 1, 2024, initially contracted for three years with an extension option at PWP’s discretion for a further term of three years and an additional term of two years and nine months, totaling eight years and nine months. Earlier, Barka Water and Power announced that the total estimated value of the PWPA, inclusive of the power plant and MSFE water plant over the specified period, is approximately US$356 million, contingent on the MSFE's contracted period. The Company accepted the award on April 24, 2024 and has since been collaborating with PWP to finalise and approve the PWPA and other associated project agreements.

The commencement of early power at full plant capacity marks a critical step forward for Barka Water and Power. This achievement not only demonstrates the Company’s operational readiness and capability but also underscores its commitment to fulfilling contractual obligations and contributing to the region's infrastructural development. The successful initiation of full capacity operations is expected to enhance investor confidence and solidify Barka Water and Power's position as a leading player in the energy sector. The Company has assured stakeholders that further updates regarding the PWPA and other project developments will be communicated in due course, reflecting its ongoing dedication to transparency and strategic growth.