Cash-strapped South Korean major Hyundai Engineering and Construction Company has been dropped from Oman's $200 million Al Kamil power project as the engineering, procurement and construction (EPC) contractor.

Al Kamil project manager, National Power Company of the UK, is said to have appointed International Power, its associate company, as the new EPC contractor. Project financiers Societe Generale and Oman's BankMuscat reportedly objected to Hyundai being appointed as the EPC contractor for the power project in the Al Sharqiya region.

The Al Kamil project involves a gas turbine power plant with an initial capacity of 250 MW. The project, slated for commercial operation next year, is expected to replace a series of diesel-run power stations in the Sharqiya region.

Al Kamil is the first major power project undertaken by National Power in the Middle East. National Power, one of the world's leading independent power generating companies, oversees generation of 36,000 MW of power with plants in 12 countries.