Hyflux Ltd has announced that its subsidiary, Qurayyat Desalination SAOC, has achieved financial close for the non-recourse project financing of Qurayyat Independent Water Project (IWP) in the Sultanate of Oman.

The US$185 million facility is provided by Mizuho Bank, Ltd., Standard Chartered Bank, Dubai International Financial Centre Branch and Singapore based Clifford Capital Pte. Ltd. A noteworthy feature of this facility is an innovative fixed-to-floating rate term loan provided by Clifford Capital Pte. Ltd.

The project has an investment of around RO 100 million (US$266 million).

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 Oman Power and Water Procurement Company (OPWP) purchasing the potable water produced by the project under a water purchase agreement with a term of 20 years.

In December 2014, we reported that the Hyflux consortium submitted the lowest bid for the Qurayyat Independent Water Project (IWP). Qurayat Desalination Company is a joint venture of Singapore-based integrated water management and environmental solutions provider Hyflux Limited (85 per cent) and wholly Omani owned Modern Channel Services (15 per cent), a partnership of local investors.

Seven firms/teams were 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.