Oman’s Electricity Holding Company (EHC) has appointed a consortium led by Canada’s CPCS Transcom International to carry out a study on the possibility of privatising the Muscat Electricity Distribution Company (MEDC).

The study will assess the readiness of MEDC for privatisation, and explore the possible privatisation options. CPCS Transcom International was selected to prepare the study after EHC had received bids in an open tender in 2014.

MEDC was formed in 2005 as a result of the restructuring of the sultanate’s electricity and water sector under a royal decree in 2004. MEDC distributes and supplies electricity in the Muscat governorate, which covers an area of 3,900 square kilometres.

The move to privatise MEDC is the latest of the government’s schemes to reform the sultanate’s utility sector. In 2014, Oman’s Council of Ministers approved plans to transfer and assign all wastewater assets and projects in the sultanate to the Oman Wastewater Services Company (Haya Water).

Haya Water has said it is working on an integrated plan to implement the government’s instruction. The company is expecting to sign an agreement with the Ministry of Regional Municipalities & Water Resources at the end of June to take over all of the sultanate’s wastewater assets.

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