France’s GDF Suez is in exclusive negotiations with Oman Power & Water Procurement Company (OPWP) for the contract to build its planned Barka 3 and Sohar 2 independent power projects (IPPs).

GDF Suez’ consortium includes Yonden, a subsidiary of the Shikoku utility in Japan, Japanese investment firm Sojitz, and Oman’s Bahwan Engineering. US firm Chadbourne & Parke is legal adviser to GDF Suez in its bid.

Germany’s Bayern LB, France’s Credit Agricole CIB and France’s Natixis are the lenders backing the bid. The US’ Milbank is legal adviser to the lenders.

The bid emerged as the frontrunner for both projects in mid-May over rival submissions from Saudi Arabia’s Acwa Power International for Barka 3, and Japan’s Marubeni for Sohar 2.

Acwa Power International bid with the local Sogex is supported by a lender group comprising Jordan-based Arab Bank, the UK’s Standard Chartered and Japan’s Sumitomo Mitsui Banking Corporation (SMBC). US firm Milbank advised Acwa Power International while Shearman & Sterling, also of the US, advised the lenders.

Marubeni submitted a bid with Qatar Electricity & Water Company (QEWC) in a 50:50 joint venture. Their bid was backed by SMBC, Japan’s Bank of Tokyo-Mitsubishi, Credit Agricole CIB and Japan Bank for International Co-operation (JBIC).

The developers submitted their technical and commercial proposals in early December 2009, which were opened in January (MEED 27:1:10).

Oman Power & Water Procurement Company (OPWP) had not asked them to take part in a separate prequalification process, choosing instead to include its qualification criteria in the request for proposals.

OPWP is advised in the tender by the UK’s Berwin Leighton Paisner, Finland’s Poyry and Oman’s Bank Muscat.