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Sultanate of Oman - Ministry of National Economy - StratigicProjectsIndex



THE LAW FOR THE REGULATION AND PRIVATISATION OF THE ELECTRICITY AND RELATED WATER SECTOR    

Sultanate of Oman - Ministry of National Economy - Privatization Water Electricity 8

Part

 Introduction  |  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8

  Part VIII : Transitional and Final Provisions

 Article 134:

The Ministry of Housing, Electricity and Water and any Person undertaking a regulated activity on the date of enforcement of this Law shall continue to undertake the activity until the Transfer Date.

 Article 135: The Ministry of Housing, Electricity and Water shall have the following duties and functions:
(a) To cooperate with the Ministry of National Economy in the implementation of the Transfer Scheme in order to distribute and Transfer the Relevant Assets and Liabilities pursuant to the provisions of this Law;
(b) To identify its forecasts in respect of demand for Desalinated water on a short, medium and long term basis and to provide the Oman Power and Water Procurement Company and the Rural Areas Electricity Company with such forecasts, and with any information about the demand for New Capacity for Desalinated water required by either company to enable them to fulfil their duties in respect of the procurement of New Capacity for Desalinated water;
(c) To coordinate with the Ministry of National Economy in respect of its forecasts in relation to the required amount of new Production Capacity for Desalinated water;
(d) To pay the Bulk Supply Tariff to the Oman Power and Water Procurement Company and/or the Rural Areas Electricity Company, as appropriate, in consideration of the new Desalinated water Production Capacity procured on behalf of the Ministry of Housing, Electricity and Water and in consideration of the sale of Desalinated water Output by the Oman Power and Water Procurement Company and the Rural Areas Electricity Company to this Ministry;
(e) To cooperate with the Oman Power and Water Procurement Company and the Rural Areas Electricity Company to decide whether there is a duty to procure New Capacity for Desalinated water, whether by the Oman Power and Water Procurement Company pursuant to Article (79) of this Law, or independently by the Ministry of Housing, Electricity and Water, or there is a duty to procure New Capacity for Desalinated water in rural areas pursuant to Article (84) of this Law by the Rural Areas Electricity Company whether connected with electricity Production Capacity, or independently by the Ministry of Housing, Electricity and Water;
(f) To comply with the duties prescribed to it pursuant to the provisions of this Law;
(g) To furnish the Licensed Transmission System Operators with the following:
(i) Sufficient information to enable each of them to operate his System in order to discharge his duties pursuant to Article (82) of this Law;
(ii) Sufficient information in respect of the Ministry’s requirement for Desalinated water from Production Facilities that are Connected to the System of any Licensed Transmission System Operator being the subject matter of a contract with the Oman Power and Water Procurement Company;
(h) To provide the Authority with such information required by it to enable it to perform its functions and duties pursuant to this Law;
(i) To become and remain as a party to and comply with the Grid Code;
(j) To conduct researches and development in relation to the electricity Supply sector and to submit its recommendations (if any) in this respect to the Council of Ministers;
(k) To submit recommendations to the Council of Ministers in respect of International Interconnections and to cooperate with the Authority and Successor Entities pursuant to the provisions of this Law.
 
 Article 136:

This Law shall not affect the functions and duties of the Ministry of Housing, Electricity and Water relating to Housing and the water supply sector, this is without prejudice to the duties and functions prescribed to this Ministry in relation to Related Water pursuant to the provisions of this Law.

 Article 137:

The Employment Rights of each Transferring Employee shall Transfer to the Successor Entity specified in the Transfer Scheme as from the Transfer Date and such employees shall comply with the employment regulations issued by the Successor Entity.

 Article 138:

Without prejudice to the rights and privileges prescribed by the regulations relating to personnel affairs issued by the Electricity Holding Company or any of the companies stipulated in Article (66) of this Law, the Employment Rights and privileges of Transferring Employees to any of such companies shall not be less than their Employment Rights and privileges received by them at the Ministry of Housing, Electricity and Water, including their salaries and allowances, on the day preceding the Transfer Date.

 Article 139:

As an exception from the provisions of the abovementioned Social Security Law, the treatment of the employees mentioned in the preceding Article shall continue to be subject to the provisions of the abovementioned law of Post Service Pensions and Gratuities for Omani Government Employees, and their contributions be paid and pension rights settled pursuant to its provisions, and the Successor Entity shall be obliged to pay pension contributions of the Transferring Employees to the pensions and gratuities fund, which shall include the part payable by the Transferring Employee and the part payable by the Successor Entity.

 Article 140:

The companies shall be obliged not to terminate the service of the Transferring Employees transferred to them for a period of 5 years from the date of privatisation of the company, on condition that the employees shall comply with the company’s regulations and the Labour Law and provided that the provisions of the law for Post Service Pensions and Gratuities for Omani Government Employees shall be taken into account in case of the termination of their services.

 Article 141:

It shall be a condition to benefit from the provisions of the preceding Articles (138), (139) and (140) that a Transferring Employee shall continue to be in the service of any Successor Entity until the date of the end of his service.

 Article 142:

The Ministry of Housing, Electricity and Water shall on the Transfer Date compensate each Transferring Employee for his accrued leave in accordance with the provisions of the legislation in force in the Sultanate of Oman, and shall also pay all amounts of salaries and allowances due up to the Transfer Date.

 Article 143:

The abovementioned Labour Law shall apply to the Transferring Employees as from the Transfer Date, and its provisions shall be applied in respect of their affairs including Labour disputes, except disputes relating to the Transferring Employee’s pension rights, which shall be subject to the jurisdiction of the Administrative Court.

 Article 144:

The difference between the wage of the Transferring Employee at the end of the last five years of his service, and his wage at the beginning of these years, shall not exceed 40 per cent, and if the difference exceeds this percentage, such increase shall not be included in the wage taken as the basis for the calculation of his pension dues.

 Article 145:

The Pensions and Gratuities fund shall be obliged to receive the contributions of the Transferring Employees, and shall also be obliged to settle their pension rights at the end of their service pursuant to the provisions of the law of Post Service Pensions and Gratuities for Omani Government Employees, taking into consideration the provisions of this Law.

 Article 146:

The Successor Entity shall offer the Transferring Employee his right to be employed pursuant to the employment conditions adopted by the Successor Entity in respect of non-Transferring Employees. It may be agreed between the Transferring Employee and the Successor Entity that these conditions shall apply to him, in which case the provisions of such agreements shall be applied will all effects resulting therefrom.

 Article 147:

The Authority shall, where it has been revealed to it that a breach of the conditions of the Licence or Exemption or non-compliance with the duties prescribed pursuant to this Law has been or is likely to be committed, by any of the Licence Holders or Exemption Holders, conduct the necessary investigation in this regard.

The Authority in order to achieve the above shall have the following powers:
(a) To notify any relevant Person to submit the documents and information specified by the Authority in the notification, which are in the possession or under the control of that Person, in the time, place and manner as shall be reasonably specified in the notification;
(b) To seek issuance of an order from the Competent Omani Court to oblige any Person who abstains from providing the documents and information pursuant to the provisions of paragraph (a), and the Court shall decide on the request of the Authority for the issuance of the order on an expedited basis.
 

 Article 148:

The Minister of Justice shall, on the basis of a request from the Minister of National Economy, issue a decision to grant the employees of the Authority nominated by it the capacity of judicial authority to implement the provisions of this Law and its implementing regulations and decisions.

 Article 149: When the rights and liabilities of the government are transferred pursuant to the relevant Salalah Project Agreements the following shall result:
(a) The rights of the government in any assets owned by it, with the exception of the ownership of the project lands, shall be transferred to the Rural Areas Electricity Company;
(b) The Oman Power and Water Procurement Company shall exercise its rights and comply with its responsibilities in accordance with the provisions of the relevant Salalah Project Agreements. The rights and liabilities of the government reverting to it on expiration of the relevant Salalah Project Agreements, or its early termination shall, in accordance with the provisions of such agreements, be transferred to the Electricity Holding Company, which shall be responsible for the operation and maintenance of all or relevant parts of such System;
(c) The Electricity Holding Company shall either appoint one of the companies stipulated in Article (66) of this Law, or establish a new company, to undertake the obligations imposed on it pursuant to the provisions of this Article.
 
 Article 150:

Without prejudice to any obligations or rights of any Person, other than the Oman Power and Water Procurement Company, pursuant to the relevant Salalah Project Agreements, the Salalah Project Company as from the Transfer Date shall have no right of recourse to any Person other than the Oman Power and Water Procurement Company in case of a breach of the obligations of such company pursuant to the relevant Salalah Project Agreements. Also, no Person other than the Oman Power and Water Procurement Company may claim against the Salalah Project Company in case of a breach of its obligations pursuant to such agreements, and no compensation for costs, expenses, losses, and damages resulting from the non fulfilment of the obligations pursuant to the relevant Salalah Project Agreements shall be paid other than to the Oman Power and Water Procurement Company, which shall take the necessary measures to fulfil its obligations and obtain its rights after consultation with the Authority.

 Article 151:

The Salalah Project Company may undertake one or more of the regulated activities pursuant to this Law without obtaining a Licence or Exemption within the Salalah Concession Area pursuant to the relevant Salalah Project Agreements, and during the period from the Transfer Date till the date of expiration of the relevant Salalah Project Agreements, in accordance with the stipulations made by such agreements.

 Article 152:

It shall not be permissible for any Person who has an economic interest in the Salalah Project Company, without obtaining the prior written approval of the Authority, to have an economic interest in any Person undertaking any of the regulated activities outside the Salalah Concession Area.

 Article 153:

The Oman Power and Water Procurement Company shall not during the Salalah Concession Period have the right of monopoly, or obligation, in respect of contracting for Production Capacity and Output in relation to the Salalah Production Facilities.
As an exception from the above, the Oman Power and Water Procurement Company shall have the right to purchase any surplus Production Capacity and/or Output form the Salalah Project Company pursuant to an agreement between the Oman Power and Water Procurement Company and the Salalah Project Company as long as such purchase is consistent with the Economic Purchase duty imposed on the Oman Power and Water Procurement Company.
 

 Article 154:

A Generation Licence issued by the Authority shall permit the Manah Project Company to have interests in the Interconnection and Transmission Facilities, as long as the company retains its interests in the Interconnection and Transmission Facilities to the extent stipulated in the Manah Project Agreements and in accordance with them.

 Article 155:

As from the Transfer Date, any securities created by the Manah Project Company over its assets or liabilities shall not be recognized without the prior written approval of the Authority.

Part

 Introduction  |  1  |  2  |  3  |  4  |  5  |  6  |  7  |  8




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