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OPWP signs Water Purchase Agreement for Barka site

Expansion project will add 10 MIGD to existing desalination capacity

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The expansion project agreement will help meet Oman's 8% annual growth in desalination demand.
The expansion project agreement will help meet Oman's 8% annual growth in desalination demand.

Oman Power and Water Procurement Company (OPWP) and ACWA Power Barka have reported that a Water Purchase Agreement (WPA) has been signed for the 10 MIGD (45,460m3/day) expansion of the desalination capacity at the ACWA Power Barka facility in Oman. Related deals – including a Usufruct agreement for project land between ACWA Power Barka and the Ministry of Housing – will also be signed.

The project, located 65km north of Muscat, is set for development on a Build, Own, Operate basis, and will be build alongside the existing plant. Oman’s demand for potable water is currently estimated to be increasing by 8% per year, and the new capacity is aimed at helping meet this projected shortfall.

ACWA Power Barka shareholders agreed the project agreements related to the expansion project during their ordinary meeting held on 26 August 2012.

The expansion project is to be funded by a syndicated loan from local and regional financial institutions, and will begin before the close of the third quarter of 2012. Water production is scheduled to begin in the final quarter of 2013.

“We are proud of our relationship with OPWP and our ability to once again demonstrate our commitment to the Sultanate by contributing to the longevity of potable water supply. In the medium to long-term, this expansion project will prove to be a well sought solution to balance shortfalls of current desalinated water production capacity in the Sultanate. We will work diligently to play a larger role in the water and power industry in Oman in the future with creative and innovative solutions that create value,” said Mohammad A. Abunayyan, ACWA Power Barka chairman.

HE Saud bin Nasser Al Shukaily, OPWP chairman, said that the project was a fast-track project requested by Oman’s Public Authority for Electricity and Water to meet projected shortfalls of desalinated water, particularly during the next two year period.
 

 

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