E&Y to advise NTPC, Bhel on Oman plant

Ernst & Young has been appointed exclusive financial advisor to National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Ltd (Bhel) for their upcoming 450 mw integrated power plant at Sohar in the Sultanate of Oman.

According to investment banking sources, there were four other firms in the race for the account. The contract has finally been awarded to Ernst & Young, the sources added.

NTPC and Bhel had late last year bagged the contract from the Oman government, though global energy majors like AES Power and Marubeni were also in the fray.

The project is an integrated one and includes a water desalination project with a capacity of 60 million gallons per day apart from the 450 mw power plant. The whole project is expected to cost around $1 billion.

While NTPC will bring to the table its domain expertise in putting up power plants, Bhel will supply power generation equipment for the plant. The project is expected to be completed by 2006.

NTPC is also in the race for a similar project in Saudi Arabia "" the Shouiba integrated power and desalination project, 10 km from Jeddah. It would house a 700 mw oil-fired power project alongside a 170 million gallons per day desalination plant.

Closer home, NTPC is trying to enter the Sri Lankan market with a 900 mw coal-fuelled power project, talks for which are currently on. NTPC is targeting to become a global power giant by 2017 and plans to set up capacity worth 56,000 mw.

Besides overseas forays, it is also diversifying into new areas including hydel power generation with as many as three projects lined up in Himachal Pradesh and Uttaranchal.

It has also floated three subsidiaries for electricity distribution, small hydel projects and power trading.

NTPC has established capacity worth 20,000 mw in the country comprising coal and gas-based stations and proposes to add another 20,000 mw by 2012.