Sumitomo-led venture wins $378m Oman water project

Reverse osmosis plant run under 20-year deal will supply to 800,000

NEWS, Business

A Sumitomo Corporation-led consortium has landed a contract from the state-owned Oman Power and Water Procurement company to build an independent water project (IWP) at Al Ghubrah in Oman.

The project will see a $378m plant being built using reverse osmosis technology and will have a capacity to treat 190,000m3 of water a day - enough to supply around 800,000 homes in the Muscat region. It is the first large-scale IWP and will be built under a 20-year build-own-operate contract by the consortium.

Other members of the consortium alongside Japanese-owned Sumitomo include Malaysian company Malakoff Corporation, and Spain's Cadagua.

Sumitomo and Malakoff will each hold 45% of the shares in the venture, and will form a joint venture to run the operation and maintenance business. Cadagua, which is part of Spanish construction giant Ferrovial, will work on the design and construction of the plant alongside Indian water engineering company VA Tech Wabag.

Galfar Engineering and Construction is the local-based partner in Oman. The plant will begin operations in 2014.

The scheme will be funded by project finance, which is expected to be completed within five months.

Sumitomo has said that it "intends to make further contributions to the development of local communities" in the GCC region by helping to provide stable water supplies through similar projects.

"Sumitomo Corporation aims to become a major player in the water infrastructure arena, helping to solve global water issues," the firm said.

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