Oman: New agreement to establish desalination plant
The Omani government has signed contracts to construct Sur desalination plant with Al Sharqiyah desalination company at a total cost of RO. 65 million. A consortium comprising Compagnie Generales (Veolia Water) from France and National Power and Water company, has been awarded the Sultanate’s first independent desalination project to be built in the wilayat of Sur.
According to ONA, Ahmed bin Abdul Nabi Macki, Oman's Minister of National Economy, deputy chairman of the Financial Affairs and Energy Resources Council and Dr. Khamis bin Mubarak al Alawi, Minister of Housing, Electricity and Water have signed the contracts on behalf of the Sultanate’s government while Founders of Al Sharqiyah desalination company signed on behalf of their company.
Macki said that the private sector will own and operate existing desalination plant in the wilayat of Sur, in addition to constructing, owning and operating a new 17.6 Million Gallon per-day (MGD) desalination plant to be completed by Jan 2009. The RO. 65 million project will be financed by the private sector.
As per agreement terms, the project’s company will put 35% of its stack for underwriting at the MSM within 4 years from company’s formation date. Macki stated that the project comprises water procurement agreement whereas the government will buy the product for a period of 22 years from the implementing company, land utilization right agreement between project’s company and Ministry of Housing, Electricity and Water.
Two agreements to connect and supply electricity between the project company and Mazoon electricity company, current plant selling agreement between projects company and Rural areas electricity company.
The government is currently constructing a RO. 43 million water pipelines associated with the plant to supply potable water to the wilayats, Macki noted.