Foreign firms eye Oman power plant plans

* Bids for Barka, Sohar plants due Dec. 7

* GE, Mistubishi, AES, Suez-Tractabel interested, board says

* Oman electricity demand increasing by about 15 pct a year

Saleh Al-Shaibany

MUSCAT, Nov 4 (Reuters) - Foreign and local companies including General Electric Co (GE.N), Mitsubishi Corp (8058.T) and AES Corp (AES.N) are interested in bidding for two power plant projects in Oman due to be tendered in December as the Gulf Arab state looks to boost generation capacity.

In a statement on Wednesday Oman's tender board also said it had set a Dec. 7 deadline to bid for the plants, which will provide power for projects ranging from petrochemicals to airports.

Urbanisation and years of growth have put Oman's existing grid under strain and prompted moves by authorities to recruit private sector investment alongside its own.

Bank Muscat BMAO.OM, the projects advisor for the state-run Public Authority for Electricity and Water, said in a report to be distributed to prospective bidders that the government would sign a 15-year power purchase agreement with investors.