Contractor consortium picked for Oman's Sharqiyah water plant
Hogan Lovells negotiated the successful bid from GC Corp, United Infrastructure Development, and Doosan
Hogan Lovells played a key role in negotiating the successful bid from GC Corporation, United Infrastructure Development Company – a part of the homegrown Bahwan Engineering Group – and Doosan Heavy Industries and Construction for the Sharqiyah Independent Water Project (IWP) in Oman.
Financial close was achieved on 5 November, 2018.
The Sharqiyah IWP is a reverse osmosis seawater desalination plant that will sell approximately 80,000m3 of desalinated water per day for 20 years to Oman Power and Water Procurement Co (OPWP) – the single buyer of power and water for all independent power and water projects within the sultanate.
To be developed in conjunction with a dedicated solar photovoltaic facility, which will contribute power to the desalination process, the project is the first of its kind in the Middle East.
MUFG Bank Ltd, Sumitomo Mitsui Trust Bank Limited, and Shinsei Bank Limited financed the $175m (OMR67.4m) project. Nippon Export and Investment Insurance (Nexi) provided the loan insurance – the first time it has provided insurance for a seawater desalination plant project in Oman – aligning itself with the Japanese government's policy to strengthen its support for developing the water and renewable energy business overseas.
The Hogan Lovells team was led by Dubai-based projects partner Sohail Barkatali, with support from Dubai partner Rahail Ali, and Dubai associate Tony Nicholson, as well as lawyers from Hogan Lovells offices in Singapore, Australia, and London.
Barkatali said: “We are excited to be part of the first project in the region combining the desalination process with renewable energy and setting a model for similar projects in the future. We expect that this will be the first of many of its kind in the Middle East given environmental and economic benefits.”
Ali added: “Oman is a key jurisdiction for Hogan Lovells. We have advised on numerous water and power projects in the sultanate, including two IWPs in the last two years, which reached financial close.”