Oman’s Electricity Holding Company (EHC) has announced it is planning to float a tender for a strategic study for the privatisation of the Muscat Electricity Distribution Company (MEDC), a subsidiary of EHC.

The purpose of the study is to investigate privatisation options and to assess the readiness of MEDC for privatisation. The study is being launched under directives of the Finance Ministry and the Public Authority for Electricity and Water (PAEW).

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. Oman’s Council of Ministers recently 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.

After the move has been finalised, the company will manage 63 wastewater facilities throughout the country. Haya Water will take over management and operation of the facilities in 2015, the company’s CEO Hussein bin Hassan Abdul Hussein said in a public announcement. Haya currently manages all of the assets across the greater Muscat governorate’s six provinces of Muttrah, Bausher, Seeb, Al-Amerat, Quriyat and Muscat. Its responsibilities involve wastewater collection, treatment and treated sewage effluent (TSE) distribution.