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Oman's largest IWP to be ready by 2014

The Ghubrah IWP will treat of 190,000 m3 of water everyday.

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The plant will be run by Muscat City Desalination Company
The plant will be run by Muscat City Desalination Company

The estimated US $300mn Ghubrah Independent Water Project (IWP) - the Sultanate's largest IWP - has reached financial close, international law firm Trowers & Hamlins, which is advising the project founders, announced.

The project will be funded by Japanese financial institutions, led by the Japan Bank for International Cooperation, through a build-own-operate project finance structure. The founding group comprises Sumitomo Corporation (Japan), Malakoff Corporation Berhad (Malaysia) and Cadagua SA (Spain).

The Ghubrah IWP will comprise a desalination plant with a daily treatment capacity of 190,000 m3. It will use reverse osmosis technology to supply fresh water equivalent to the daily amount consumed by approximately 800,000 people.

The plant will be run by Muscat City Desalination Company under a 20-year Water Purchase Agreement with Oman Power and Water Procurement Company, and commercial operation is scheduled to commence on a fast-track basis in October 2014.

Trowers & Hamlins acted as local counsel to the sponsor group on all aspects of Omani law relating to financial close and the establishment of a specialist operation and maintenance company.

The consortium was appointed preferred bidder for the Ghubrah IWP in November 2012. Tsutomu Sakamoto, Deputy Chairman of Muscat City Desalination Company, representing Sumitomo, commented: "Sumitomo, Malakoff and Cadagua are very proud to have the opportunity to contribute to providing a sustainable water supply for 20 years through this project. We believe the Ghubrah IWP will ease the serious shortage of water facing Muscat."

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