The Ministry of National Economy is forming a new high powered analysis unit to study the economics of the nation's water and energy provision, and to develop a national strategy for energy [aka subsidised and increasingly unreliable electricity], fuel [ever increasing cost of subsidising petrol and diesel] and desalination/dams.
Perhaps a highly experienced expat leading such a team can stop this madness of building a $1bln coal fired power station in the middle of nowhere running on imported coal...
Oman continues to plan a coal fired power station in Duqm even though Oman has no useful coal deposits to run it
Oman needs to do a lot more to:
- stop subsidising electricity
- encourage electricity efficiency (double glazing and insulation?)
- stop subsidising petrol
- stop wasting water
- develop solar electricity
- reduce requirements for more and more desalination
The current incentives and subsidies present a huge distortion in pricing compared to true costs and therefore not only allow too much waste of natural gas. The subsidising of power and gas acts to discourage any real private investment in power generation and infrastructure, or in additional gas production and alternative energy.
In other news,
Oman cracks down on hard working poor foreigners
Oman's fabulous Ministry of Manpower is cracking down on... poor subcontinent workers who have a visa with one employer but actually work on building sites for others. Oman changed the law to supposedly allow the employers to be fined, but naturally its the poor workers who are paying the price. The reported increases in the suicides of such unfortunates will only increase as a result. Once again a cheap and ill-thought out law is being used to try and fix a deep-seated problem by diktat. The claim by Salim Bin Saeed Al Badi, a DG with the Ministry, that as a result more Omani will be employed working on building sites is pure delusional fantasy that might sound good in the comfort of an air-conditioned Ministry tea-room but has precious little to do with the reality of the labour market.
Meanwhile, speaking of delusional fantasies, Dubai has still to resolve the Dubai World debt problem and the world wide panic it started last Wednesday. Markets have woken up to the fear of a second global meltdown as the debts in Dubai Inc, and the related CDS derivatives, are suspected of having the potential to become the new sub-prime crisis triggering more liquidy freeze. Royal Bank of Scotland, for example, appear to have more than $2bln in exposure to financial genius Sh. Maktoum's various money pits, and HSBC are reported to have loaned him almost $16bln. LMAOFOFL.
