The selected developers of Oman’s Sohar independent water project (IWP) are expected to sign financial agreements imminently.

Local Bank Muscat, Oman Arab Bank, Bank Dhofar and Bank Sohar will finance the project.

The 250,000 cubic-metre-a-day (cm/d) IWP is to be developed by Spain’s Valoriza, local Sogex and the Oman Brunei Investment Company. It is estimated to cost over $500m.

The project finance is understood to have a 20-year term and an 80:20 debt to equity ratio. The pricing is expected to be about 4.5 per cent fixed for five years.

Sohar’s sister project, Barka IWP, signed a water purchase agreement and financing deal in early March.

The 281,000 cm/d project is financed by Japan’s Sumitomo Mitsui Bank Corporation, the Bank of Tokyo Mitsubishi UFJ, Germany’s KfW, and France’s Credit Agricole.

The two projects together are estimated to require about $600m in financing.