Oman Desalination Contracts Signed

Oman Power and Water Procurement Company (OPWP) has signed agreements with consortia led by Japan’s Itochu and Spain’s Valoriza Agua for the development and operation of desalination plants at Barka and Sohar on Oman’s northern coast.

OPWP estimates the cost of Barka Phase 4 at OR115mn ($300mn). Barka will be financed by Japan’s Bank of Tokyo-Mitsubishi, BTMU, Germany’s KfW IPEX-Bank, French bank Crédit Agricole and Japan’s Sumitomo Mitsui Banking Corporation, while local banks are financing Sohar, specialist weekly Project Finance International says.

The two new plants, with a combined capacity of 530,000 m3/day – equivalent to more than 70% of Oman’s current desalination capacity of 740,000 m3/d – are among a number of projects with a combined desalination capacity of 730,000 m3/d which OPWP intends to bring online during 2017-19. The 280,000 m3/d Barka Phase 4 project will be Oman’s largest, developed by Itochu (36% equity) in partnership with France’s Suez Environnement and Engie (27% each), and Omani conglomerate W J Towell (10%). OPWP says that the new Barka plant is due to begin operations by April 2018.


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