Concession fixed for Salalah wastewater

08 February 2002

The commercialisation of the Salalah wastewater system has taken an important step forward with the completion of an options report. The study, prepared for the Ministry of National Economy by project finance advisers Ernst & Young, sets out the framework for the commercial operation of the wastewater system for a period of 23 years. The firm has put together its proposals with the assistance of legal and technical advisers Curtis, Mallet-Prevost, Colt & Mosle (CMP)of the US and Mott MacDonald of the UK (MEED 31:8:01).

The government is currently reviewing a draft business plan and concession agreement for the system and is expected to give its final approval in April for the adoption of a commercial tariff structure for Salalah Sanitary Drainage & Services Company (SSDSC), which manages the system. SSDSC is recommended to enter a three-year initial phase of operation to demonstrate its viability and track record. The government is then to invite bids from the private sector for a partial equity stake in the company, which will have a 20-year operating concession.

The local Galfar Engineering & Contracting is building the associated sewerage network at Salalah, which will eventually serve some 134,000 people. The wastewater treatment facility, built by ABB SUSAof the US, currently has the capacity to treat 20,000 cubic metres a day of effluent.

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