OPWP signs agreement for RO100MN Sohar IWP

Oman Power and Water Procurement Co (OPWP) on Wednesday signed an agreement for the Sohar independent water project (IWP) with a consortium consisting of Oman Brunei Investment Co (OBIC), Sogex Oman Co and Valoriza Agua- Spain, under the flagship of Myah Gulf Oman Desalination Co, which will execute the project.

The agreement was signed by Eng Ahmad al Jahdhami, CEO of OPWP, and Juan Pablo Diaz Batanero – on behalf of the consortium. The ceremony at Crowne Plaza Muscat was attended by water and power sector representatives and businessmen.

The new Sohar IWP – based on reverse-osmosis technology – will be one of the biggest water desalination projects in the Batinah North governorate, with a production capacity of 250,000 m3 per day. The project, with an investment of RO100mn, is expected to be operational in 2018.

As per the agreement, OPWP would have the right to buy the desalinated water produced at the plant for a concession period of 20 years. The project is expected to meet about 80 per cent of water demand in Batinah North, with its growing urbanisation, tourism and industrial activities.

“The project will have a role in supporting water security in Oman, in general, and in Batinah North, in particular, and will contribute to reducing the cost of water procurement, thanks to its enhanced efficiency.

“The project is totally financed by local banks – Muscat Bank and Oman Arab Bank. This comes in line with the banking sector vision of supporting local enterprises that contribute to the welfare of Omani people,” said Qais al Kharusi, CEO of OBIC.

 

“According to the agreement, the investing company will provide the required technical expertise for Omani employees and workers recruited at the project. This in turn, will open new windows for small and medium enterprises (SMEs) to have a hand and make profits,” Kharusi added.

Dr Suhaib Abu Deyah, project manager with Sogex Oman, said the agreement highlights investor confidence in the local market and in Omani banks. “Having the project 100 per cent funded by local banks optimises economic value,” Dr Suhaib said.

Myah Gulf Oman is a joint venture between Valoriza Agua, a Spanish company specialised in designing and building desalination plants, OBIC, and Sogex Oman.

 

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