Sohar water plant to start operation in 2018

Muscat: Oman Power and Water Procurement (OPWP), the sole procurer of new power generation and water desalination capacity, on Wednesday signed a OMR100 million agreement with a consortium to establish Oman Gulf, a flagship company which will build desalination plant in Sohar.
The project is one of the biggest of its kind at Al Batinah North Governorate and is expected to meet about 80 per cent of water demand, under the growing urbanisation, tourism and industrial activities in Al Batinah North.
Slated for commercial operation in 2018, the independent water project will produce 250,000 cubic metres of water per day, use reserve osmosis as water purification technology.
As per the terms of the agreement, OPWP will have the right to buy the desalinated water produced by the plant during a concession period of 20 years.
The agreement was signed by Eng. Ahmad bin Saleh Al Jahdhami, chief executive officer of OPWP and Juan Pablo Diaz Batanero on behalf of the consortium at the Crown Plaza, Muscat.
The consortium comprises Muscat-based Oman Brunei Investment Company; Sogex Oman, a subsidiary of Suhail Bahwan Group; and Valoriza Agua, a Spanish company.
"The project will have a role in supporting water security in Oman, in general, and in Al Batinah North, in particular, and will contribute to reducing the cost of water procurement thanks to the enhanced efficiency of the new plant,” said the CEO of Oman Power and Water Procurement.
The signing ceremony was attended by water and power sector representatives and businessmen.
“The project is totally financed by local banks and this comes in line with the banking sector vision of supporting the local enterprises that contributes to the welfare of the Omani people,” said Qais Al Kharusi, chief executive officer of Oman Brunei Investment Company.
“According to the agreements, the investing company shall provide the required technical expertise for the Omani employees and workers recruited at the project. This in turn, will open new windows for the Small and Medium Enterprises sector (SMEs) to have a hand and make profits,” Al Kharusi added.
Dr Suhaib Abu Deyah, project manager at Sogex Oman pointed out that the agreement highlights the investors’ confidence in the local market and the Omani banks. “Having the project 100 per cent funded by local banks optimises the economic value,” he added.
Valoriza Agua is a Spanish international company specialised in designing and building desalination plants with investments in the Middle East, Australia and the US, while Oman Brunei Investment, which is Muscat-based company interested in the commercial projects; and Sogex Oman which is a subsidiary of Suhail Bahwan Group that was established in 1971, and is one of the pioneering companies at maintenance and operating plants in Oman, the UAE, India, Saudi Arabia and Algeria.