Britain's National Power, which has won the build-own-operate-transfer (BOOT) contract for Oman's third private power project, has awarded South Korea's Hyundai Engineering the deal to build the plant in the Sharqiya region at a cost of $95 million.

The construction of the power plant is expected to start at the end of the year and will take 15 months to complete.

Earlier last month, the Oman Tender board signed a 15-year agreement worth RO68 million ($176.6 million) with National Power to run the 240-MW power plant at Al Kamil in eastern Oman. The British firm will have the option to renew the agreement at the end of the term. [QQ]The project is expected to be operational in April 2002.

Oman has one private power plant in operation at Al Manah and is in final negotiations with developers for another private plant in the southern city of Salalah. Bids are also being evaluated for a contract to build a 400-MW power plant in the coastal town of Barka.