Oman signs final contracts for IWP

19 April 2018

Oman Power & Water Procurement Company (OPWP) has signed the main development contracts with a consortium led by Saudi Arabia’s Acwa Power for the RO60m ($156m) Salalah independent water project (IWP).

MEED reported in December that the Acwa Power consortium, which also contains France’s Veolia and the local Dhofar International Development & investment Company, had been selected to develop the 25 million imperial gallons a day (MIGD) desalination plant in the southern area of the sultanate.

Under the terms of the water purchase agreement (WPA), the consortium will develop the plant and sell water to OPWP under a build-own-operate (BOO) framework. The plant is scheduled for operation by 2020.

Dhofar Desalination Company, formed to develop and operate the Salalah plant, has awarded the engineering, procurement and construction (EPC) contract to a consortium of Italy’s Fisia Italimpianti and Spain’s Abengoa.

The plant will play a key role in meeting the rapidly growing demand for water in the Dhofar governorate. OPWP expects demand for water in the sultanate’s southern region to grow by an annual rate of 9 per cent, from 125,000 cubic metres a day (cm/d) to 231,000 cm/d by 2023.

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