Oman: 7 groups in fray for $ 1bn Oman water projects

International heavyweights specialising in water technologies and infrastructure solutions are competing for licenses to develop two major Independent Water Projects (IWPs) at Sohar and Barka respectively in the Sultanate.

In all, seven consortiums led by prominent water utilities have submitted firm bids for the two water schemes, according to Oman Power and Water Procurement Company (OPWP), the sole procurer of all new power generation and related water desalination capacity under the Sector Law. A wholly government-owned subsidiary of The Electricity Holding Company (Nama Group), OPWP is overseeing the competitive process leading to the award of licenses for the two large-scale projects.

The bidding line-up, as revealed by OPWP, is as follows: (i) Abengoa Water (along with National Power & Water Co LLC and Muscat Overseas LLC (ii) GS Inima Environment AS (with GS Engineering & Construction, Acciona Aqua SA, and Oman Investment Corporation) (iii) Hyflux Ltd (iv) Itochu Corporation (with Degremont, International Power SA — Dubai Branch, and W J Towell & Co LLC (v) JGC Corporation (with Sojitz Corporation) (vi) Valoriza Agua SL (with Oman Brunei Investment Company and Sogex Oman LLC), and (vii) Veolia Middle East (with Marubeni Corporation and Nippon Koei).

According to officials, technical offers from the consortiums are currently being evaluated. Bidders who make the cut in the technical evaluation will have their financial bids assessed as well — an exercise that will help produce a final shortlist of contenders.

Those on the shortlist will then be invited for one-on-one negotiations with OPWP leading to the selection of the successful bidders.

It is expected that two successful bidders will go on to secure a licence each to develop, finance, design, engineer, construct, own, operate and maintain one of the two water-only schemes.

The Barka IWP, with a contracted desalination capacity of 281,000 cubic metres per day (61.8 million imperial gallons per day MIGD), will be the larger of the two schemes.

The Sohar IWP, on the other hand, will be sized at 250,000 cubic metres per day (55.0 MIGD) of desalination capacity. Together, they represent the single biggest procurement of new water desalination capacity in the Sultanate costing a ballpark $ 1 billion, say experts.

Importantly, both schemes, along with a new IWP (44 MIGD) under development in Qurayat in Muscat Governorate, are key to securing the long-term potable water requirements of a vast swathe of northern Oman covered by the Interconnected Zone. The zone encompasses the governorates of Muscat, Batinah North, Batinah South, Buraimi, Al Dakhiliyah and Al Dhahirah.

Principal sources of desalinated water for these areas are the Ghubrah Power and Desalination Plant, Barka 1 and Barka II, Sohar 1, and more recently Muscat City Desalination Company’s new facility in Al Ghubra.

The new IWPs at Sohar and Barka are slated for commercial operation by April 1, 2018. OPWP is being advised by a consortium of consultants led by Project Financing Solutions Limited as Financial Advisers, and includes Fichtner (Technical Advisers) and DLA Piper (Legal Advisers).