This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Oman Power and Water Procurement Company (OPWP) has recently signed the agreement for the Sohar independent water project (Sohar IWP), to be located at the Batinah coast, with the consortium Myah Gulf Oman Desalination Co, composed of Valoriza Water (51%), a subsidiary of Sacyr, Oman Brunei Investment Company (25%), and Sogex Oman (24%).

The project includes design, construction, ownership, financing, maintenance and operation, of a seawater desalination plant. The drinking water produced by the plant will be sold under a 20 year water purchase agreement to OPWP. The Sohar IWP development will involve a total investment of US$259 million

The desalination plant with reverse osmosis technology will have a capacity of 55 million imperial gallons per day (MIGD), and it will have a capacity of desalinated water of 250,000 cubic meters per day (m³/d). The plant will begin operation in 2018.

The project also achieved financial close and it is totally financed by local banks Muscat Bank and Oman Arab Bank.

According to sources, Qais al Kharusi, CEO of Oman Brunei Investment Company, said:

"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.

"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."

The total income expected from the project is estimated at US$1,200 million.

Last March we reported Hyflux Ltd announced it has been formally awarded the Qurayyat Independent Water Project by OPWP, following the signing of the water purchase agreement between OPWP and Hyflux's subsidiary, Qurayyat Desalination SAOC.

Additionally, OPWP signed a water purchase agreement to establish the Barka Desalination Plant (Phase 4) with a consortium of ITOCHU Corporation, SUEZ, ENGIE and W J Towell & Co LLC.