Disclosure : Desalination plant
“Further to the disclosure in the Board of Directors Report for the year ending 31 December 2017 regarding the Company’s intended participation in the ‘2022 Power Procurement process’ with the objective of bidding for and securing a new PWPA with OPWP with effect from 2022, the Board of Directors of Sohar Power Company SAOG (“the Company”) wishes to inform Muscat Securities Market and the investors’ community that the Company is participating in the Power 2022 procurement process issued by OPWP.
As part of the OPWP tender process, the Company completed the prequalification stage for a Power and Water offer and, for a Power only offer. OPWP has informed the bidders on 7 February 2019 of their pre-qualification status and notified the Company it has pre-qualified its Power only offer but did not pre-qualify its Power and Water offer.
As a consequence, the Company will not be able to extend the operations of its Desalination plant beyond the term of the current PWPA ending in March 2022. This situation triggered an impairment review of the Desalination plant which resulted in an impairment loss of OMR 18.6 million to be recorded in the financial year 2018.
The above impacts are unaudited and require confirmation from the external auditors of the Company.”