Veolia Middle East, with an ACWA Power led consortium and DIDIC awarded Salalah IWP project at a cost of 60 million Omani Rials.
- The project is the 1st independent water desalination procurement in the Governorate of Dhofar
- Commercial operation of the plant by 2020
Salalah, Oman, 18th April 2018: Oman Power and Water Procurement Company (Member of Nama Group) the sole procurer of all electricity and water capacity in the Sultanate, 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).
Speaking at the event, Mr. Yaqoob Bin Saif Al Kiyumi, Chief Executive Officer of Oman Power and Water Procurement Company said: “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.
Mr. Al Kiyumi added that “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: “Water is a vital resource for development and human life, and we are pleased to work in partnership 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.”
Rajit Nanda, Chief Investments Officer at ACWA Power, said: “The Salalah IWP project will play a key role in meeting the increasing demand for water in the Sultanate. This 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. Oman continues to be one of the leading investment destinations in the region, and we look forward to furthering our growing presence in the country”.
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.
“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.