According to sources, the Hyflux/Bahwan consortium has submitted the lowest bid to the state-owned firm Oman Power and Water Procurement Company (OPWP) for the development of a new seawater desalination project in Qurayat, south of Muscat.

The Hyflux/Bahwan consortium, advised by Mizuho, is in pole position to win the project. Competitive finance is coming from Clifford Capital at a 1.5% coupon plus bank financing from Mizuho, SMBC and Standard Chartered.

The request for proposals (RFP) was released in April this year. Seven firms/teams had been shortlisted for the project:

• Hyflux/Bahwan consortium
• GS Inima,
• A consortium led by Tedagua (ACS),
• A consortium led by Sumitomo,
• A consortium led by Valoriza (Sacyr),
• A consortium led by Itochu and
• A consortium led by Abengoa.

GS Inima has been the only firm that did not submit a bid for the project. The project is expected to be awarded by the beginning of 2015 and the new facilities are expected to be operational by 2nd quarter of 2017.

The project involves the design, construction, ownership, financing, operation and maintenance of a high-efficient desalination facility with 200,000 cubic metres per day of potable water output, to enter into commercial operation in March, 2017.

The project will be structured as an independent water project (IWP) with OPWP purchasing the potable water produced by the project under a water purchase agreement with a term of 20 years.

Ahmed al Jahdhami, CEO of OPWP, stated:

This project would be a vital addition to the main system as it is amongst a series of major projects undertaken by the company in the coming years. The project is anticipated to create jobs for the nationals and opportunities for business owners. Additionally, as the project is located in a rural and residential environment, the company has given this aspect its utmost attention to ensure that the setting of the Plant buildings is architecturally sympathetic to its surroundings and beneficial to the overall landscape."

According to OPWP, the project is among others being rolled out by the company to increase the overall capacity of desalinated water in Oman under contract to OPWP from the current output of 670,000 cubic metres per day to 1,300,000 cubic metres per day by 2020.