Tanweer

The Company is primarily undertaking electricity generation, transmission, distribution & supply and desalination activities under a license issued by Authority for Electricity Regulation, Oman, this is vertical integration business. The Company commenced its operations on 1 May 2005 following the implementation of a decision of the Ministry of National Economy issued pursuant to Regulation and Privatization of the Electricity and Related Water Sector law promulgated by Royal Decree 78/2004. The establishment and operations of the Company is governed by the provisions of this Law. The Operation of the RAECO Systems are governed by the license, RAECO Codes and any instruction issued by the authority. The Sector Law requires that the assets and liabilities of Public Authority for Electricity and Water (PAEW) that relate to the functions and duties of the Company be transferred to it by a Transfer Scheme. The Company is wholly owned by Government sector, and is fully owned by Ministry of Finance; directly by 1% and 99% through Electricity Holding Company SAOC (EHC is 100% owned by MOF).RAECO operates Power plants for generate and supply electricity to the Dhofar, Musandam, Al-Wusta, Masirah parts of Dakliyah, Dahira and Sharqiya regions. The power generated from the plants in these regions is being sold directly to customers and a separate power sale from Raysut A&B (Dhofar region) power plant to PWP based on agreed Power Purchases Agreement by both parties. Our Desalination Plants are located in Abu Mudhaibi, Sowgrah, Kumzer, Masirah and Al Hallaniyat. The desalinated water is sold to PAEW and the water sales tariff(The Bulk Supply Tariff (BST) is approved by the Regulatory Authority. On 1 May 2005, in accordance with the law for the regulation and privatization of Electricity and related Water Sector (the Sector Law), the assets and liabilities of Ministry of Housing, Electricity and Water (MHEW) that relate to the functions and duties of the company were transferred to it by a Transfer Scheme. Our license and business activities: