BE2C2 Report — A Chinese firm plans to start construction work on a large solar panel project in Duqm special economic zone of the Sultanate of Oman by the end of this year.
The $94 million-project, which will have an installed capacity to manufacture PV panels for power plants and residential buildings to generate around 1,000 megawatt energy per annum, is being jointly promoted by Ningxia Zhongke Jiaye New Energy and Technology Management Co. and the Oman Investment Fund.
“The project will be ready by the end of 2019,” Ali Shah, chairman of Oman Wanfang told the Times of Oman.
Ningxia Zhongke will have a 51 per cent stake in the solar panel venture, while the remaining 49 per cent ownership will be held by the Oman Investment Fund.
Li Li, president of the Chinese outfit said that the company anticipates $215 million in sales revenue per annum in the first phase.
The Chinese firm, which signed a land lease agreement with Oman Wanfang in April, plans to export its products to overseas markets, where the company has a strong presence. Apart from MENA (Middle East and North Africa) region, the export markets include Europe, the United States and India.
Presently, most of Ningxia’a products are sold within China, while a portion of the production is exported to Australia, Japan and South Asian countries. Ningxia panels meet all international standards, including European and U.S. standards and China accounts for 70 per cent of the global solar panel production.
The Chinese company plans to employ 300 people in the first phase, which will be scaled up to 900 to 1,000 employees in the second phase.
Apart from Ningxia, nine Chinese firms in April signed land lease agreements with Oman Wanfang—the company that manages 1,172 hectares of land for developing a major China-Oman industrial zone in Duqm—to build various projects, ranging from a methanol venture to a five-star hotel, with a total investment of $3.06 billion.
These projects, which are expected to change the face of Duqm as a major manufacturing and trans-shipment hub, range from a $2.3 billion methanol venture to a $406 million-power project and a solar panel project. Plans are also afoot to build a 230,000 barrels per day-capacity refinery as part of the second phase development.
Oman Wanfang, which is a consortium of six private Chinese firms, will develop and attract direct foreign investment from China for building a host of light, medium and heavy industries and tourism projects.
Considered as the biggest investment in Duqm, the China-Oman Industrial Park is one of the leading overseas industrial parks promoted by the National Development and Reform Commission and the Ministry of Commerce in China.