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OPWP signs deals for Oman's $156m Salalah water desalination plant

The plant’s engineering, procurement and construction contract has been awarded to a consortium of Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente

An Acwa Power-led consortium has signed deals with OPWP to develop theSalalah Independent Water Project [image: Acwa Power].
An Acwa Power-led consortium has signed deals with OPWP to develop theSalalah Independent Water Project [image: Acwa Power].

An Acwa Power-led consortium consisting of Veolia Middle East and Dhofar International Development and Investment Holding Co (DIDIC) has inked agreements to develop a water desalination plant in Oman.

With a development value of more than $155.8 (OMR60m), the Salalah Independent Water Project (IWP) will generate 25 million gallons per day of desalinated water using reverse osmosis technology, Acwa Power said in a statement.

The plant’s engineering, procurement and construction contract has been awarded to a consortium of Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente, while a Veolia-led consortium, with NOMAC Oman and DIDIC, will carry out its operations and maintenance.

The project is being procured by Oman Power and Water Procurement Company (OPWP) on a build-own-operate basis.

OPWP also signed a 20-year water purchase agreement (WPA) with Dhofar Desalination Company, which was established by the consortium for the execution of the water desalination plant.

Dhofar Desalination Company will be owned by ACWA Power (50.1%), Veolia Middle East (35%), and Dhofar International (14.9%).

According to Acwa Power, the project will be vital in meeting the Dhofar region’s increasing demand for water.

Yaqoob Bin Saif Al Kiyumi, chief executive officer of OPWP, said: “This project is considered as the first standalone water desalination project in the Governorate of Dhofar and would positively contribute to security of water supply in light of urbanisation and ambitious projects that are implemented in various sectors in the Governorate.

He added: “The development of this project, with a total cost of more than $155.8 (OMR60m), reflects the confidence of foreign investors to invest in the Sultanate and in the water sector in particular, given the legal and regulatory transparency and stable environment.”

Meanwhile, Paddy Padmanathan, president and chief executive officer of ACWA Power, said: “Water is a vital resource for development and human life, and we are pleased to work in partnership with OPWP to deliver desalinated water to the region.

“This project is one of a number of projects we are currently working on in the Sultanate, and we look forward to continuing to supply power and water at an economical cost.”

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Construction Week - Issue 754
Nov 23, 2019