The build, own and operate (BOT) project, which will be modelled as an independent water project (IWP), will be developed by a consortium of Malaysia's Malakoff International Ltd (MIL), Sumitomo of Japan and Cadagua at a cost of around US$300mn.
In a press release, VA Tech Wabag said that Oman Power and Water Procurement Company (OPWP), which awarded the project to the MIL-led developer consortium, will enter into a water purchase agreement with the project company to be formed shortly by the developer consortium.
Cadagua, VA Tech Wabag and Galfar will form an integrated joint venture (JV) in the form of a special purpose vehicle (SPV) in Oman and enter into an EPC contract with the project company for execution.
“The pre-project activities have been kick-started and the financial closure is expected to be completed in five months time, the press release said,” VA Tech Wabag said.
In a disclosure to the Muscat Securities Market (MSM), Galfar said that the price of EPC package is yet to be determined and shall be finalised upon financial closure with the project company.
Rahul Jaiswal, president, desalination business group, VA Tech Wabag said, “This success confirms Wabag’s strategy of focussing on desalination as an area of high potential deserving special focus.
"This project is a shot in the arm for the desalination business group of VA Tech Wabag which was started this year to focus on the desalination business segment.”