Oman’s Nama Holding, formerly the Electricity Holding Company, has begun seeking an advisor for the privatisation of the Muscat Electricity Distribution Company (MEDC), according to the Oman News Agency.

The advisor will explore the possibility of divesting a minority stake in MEDC.

Canada’s CPCS Transcom International finished a study on the options for privatising MEDC earlier in 2016, including technical, financial and legal due diligence.

The privatisation aims to improve quality and efficiency, enable Omani human capital in the company, and encourage a wider ownership while boosting the Muscat Securities Market.

MEDC could be floated imminently on the exchange, Abdullah Al-Salmi, executive president of Oman’s Capital Markets Authority told MEED’s Outlook Oman on 24 October.

MEDC distributes electricity in Muscat Governorate, under a sector law from 2004 that unbundled transmission and distribution companies. MEDC is rated Baa2 stable by Moody’s Investors Service.

However, Oman’s subsidies on power and water, with very low rates to consumers, could complicate the privatisation. MEDC received a subsidy of RO71.5m ($186m) in 2014, compared to total revenues of RO228m.

While Muscat raised fuel prices at the start of 2016, it has not tackled the even more sensitive power subsidy.

Nama completed a financing package thought to be worth around $2.7bn for its subsidiaries in the first half of 2016.