Oman Power and Water Procurement Company has 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.

Total investment in the project, which will boost Oman’s total water desalination capacity by around 20 per cent, is estimated at RO 115 million ($300 million).

The agreements were signed by Ahmed bin Saleh al Jahdhami, CEO of OPWP, and by Toshiyuki Kosugi, ITOCHU Corporation on behalf of the Consortium.

InfraPPP understands that the financing agreement was also signed by the companies and the lenders.

The scope of the project, which will be located in Barka in South Batinah Governorate, includes the design, construction, ownership, operation and maintenance of a high efficiency reverse osmosis desalination facility with total of 281,000 m3 per day (61.8 million gallon per day) of potable water output. 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.

Speaking at the event, Ahmed bin Saleh al Jahdhami, CEO of OPWP, said:

“The project is the largest desalinated water capacity ever procured in the Sultanate. As such, it will be a vital addition to the main system and will positively contribute to the security of water supply in the country. The project is anticipated to create jobs for nationals and opportunities for business owners, including Small and Medium Enterprises.”

OPWP started the procurement process to develop the project in February 2015 with 12 companies participating in the prequalification process. Bidders competed in their technical and financial bids, and through the evaluation and negotiation process carried out by the company, the project was awarded to the consortium of ITOCHU Corporation, SUEZ, ENGIE and W J Towell & Co LLC, Al Jahdhami said.

Toshiyuki Kosugi, Adviser, ITOCHU Corporation and representing Barka Desalination Company consortium, noted:

“The Barka Desalination Company consortium members are proud of their commercial success and the competitiveness of their offer, which gathers international and local expertise to propose the most suitable technical and financial solutions to meet the Oman’s needs for clean potable water. Within this project, we, as a consortium, are committing to support the Sultanate of Oman in the sustainable management of its scarce resources.”