Salah IWP project to boost water security in Oman
ACWA Power led consortium with Veolia and DIDIC awarded Salalah IWP project at a cost of $155.6mn. The project is the first independent water desalination procurement in the Governorate of Dhofar
Oman Power and Water Procurement Company (Member of Nama Group) the sole procurer of all electricity and water capacity in the Sultanate, has signed a number of agreements to establish the Salalah Independent Water Project (IWP) with an ACWA Power led consortium with Veolia and DIDIC.
The event was held under the patronage of His Excellency Sayyid Mohammed bin Sultan Al-Busaidi, the state minister and governor of Dhofar with attendance of a number of government officials and representatives from the consortium and electricity sector in the sultanate.
The plant, which will have a capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology, is procured by Oman Power and Water Procurement Company SAOC (OPWP) under a Build-Own-Operate framework on the back of a 20 year Water Purchase Agreement (WPA).
The project will be vital in meeting Dhofar region’s increasing demand for water, which is expected to be at an average of six percent per annum over the next seven years.
Dhofar Desalination Company SAOC, the Project Company established for the execution of this Project, will be owned by ACWA Power, Veolia Middle East and Dhofar International Development & Investment Holding Co SAOG (DIDIC).
“This project is considered as the first standalone water desalination project in the Governorate of Dhofar and would positively contribute to security of water supply in light of urbanization and ambitious projects that are implemented in various sectors in the Governorate,” said Yaqoob Bin Saif Al Kiyumi, Chief Executive Officer of Oman Power and Water Procurement Company.
“The development of this project with a total cost of more than 60 million Omani Rials reflects the confidence of foreign investors to invest in the Sultanate and in the water sector in particular, given the legal and regulatory transparency and stable environment.”
Paddy Padmanathan, President & CEO of ACWA Power said that ACWA Power was pleased to partner with OPWP to deliver desalinated water to the region.
“This project is one of a number of project we are currently working on in the Sultanate and we look forward to continue to supply power and water at an economical cost,” said Padmanathan.
The Salalah IWP project will play a key role in meeting the increasing demand for water in the Sultanate.
The significant milestone will support Oman’s infrastructure in line with the Sultanate’s efforts to reduce reliance on groundwater resources and maximize the use of local resources.
“We are very glad to have partnered with ACWA Power and DIDIC for the Salalah IWP and we are committed to extend the delivery of optimal operations and plant performance to OPWP”, said Patrice Fonlladosa, President & Chief Executive Officer of Veolia Middle East & Africa
The Engineering, Procurement, and Construction of the plant will be handled by a consortium of Fisia Italimpianti SpA and Abeinsa Infraestructuras Medioambiente S. A.
The Operations and Maintenance of the plant will be undertaken by a consortium led by Veolia Middle East with NOMAC Oman and DIDIC.
“By September 2020, we will be delivering the first cubic metre. The capacity is 100,000 cubic metres, which is 25 million gallons a day,” said Fonlladosa.
Oman now has three desalination plants aimed at tackling the water crisis, which according to UN reports can put 1.8 billion people in absolute water scarcity by 2025.
“In 2007, we started the operation of the Sur desalination plant and we doubled the capacity last year. Ghubra is a successful operation, and now, Salalah. There is much more to come as there is scarcity in this country,” Fonlladosa added.