JGC Corporation has announced that Al Asilah Desalination Company S.A.O.C (Asilah), in which JGC is the major shareholder, has received an award to build, own and operate a seawater desalination plant in the Sharqiyah region in eastern Oman, by the Oman Power and Water Procurement Company S.A.O.C.

The contract involves the construction, operation and maintenance for a period of 20 years on a Build-Own-Operate (BOO) basis of a seawater desalination plant with the application of reverse osmosis membrane. The plant will be capable of supplying nearly 80,000 cubic meters per day, which is sufficient to provide potable water for a population of approximately 200,000, and is scheduled to commence service in April 2021.

Part of the financing for the total project cost of around JPY20 billion (US$176.5 million) will be provided through project financing by MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited and Shinsei Bank, Limited, whose loan would be covered by Overseas Untied Loan Insurance provided by Nippon Export and Investment Insurance.

JGC bid for the project in consortium with United Infrastructure Development Company. The construction work will be carried out by Doosan Heavy Industries and Construction Co., Ltd.

In Oman, the demand for water is expected to increase by approximately 6% per year as the growth in population continues while rapid urbanization makes the matter of securing sufficient potable water an increasingly urgent matter for the country.