Oman Power and Water Procurement Company, which arranges power generation and water desalination capacity in the sultanate, will sign agreements this week for a RO115 million ($300 million) water project, the company said on Tuesday.
Japan's Itochu Corp will hold 36 per cent of the project, while French firms Suez Environnement and Engie will each take 27 per cent stake and the rest 10 per cent will be with a local company WJ Towell & Company.
The contracts for the Barka Independent Water Project, due to begin operating by January 2018, will cover the design, construction, ownership and operation of reverse osmosis desalination facilities producing 281,000 cu m per day of drinking water.
The BOO (Build, Own and Operate) project provides for the construction and the operation for 20 years of a reverse osmosis desalination plant with surrounding facilities, which will be the largest seawater desalination plant in the sultanate, said a statement from Itochu.
The plant will start supplying drinking water on April 1, 2018, it added.
On the new project, Masahiro Okafuji, the president and chief executive, said: "Itochu sees water business as one of the promising business areas in light of soaring water demand arising from rapid worldwide population growth, economic development, global warming and has been proactively expanding its activities into seawater desalination, water and sewage utilities, and other water businesses."
"We are keen to further promote projects that contribute to effective utilisation of water resources in Middle East area and other regions worldwide," he added.-Reuters and TradeArabia News Service