ACWA Power Barka has announced the signing of a water purchase agreement (WPA) with Oman Power and Water Procurement Company (OPWP) for the expansion of its existing water desalination capacity by 45,460m3 per day.
The agreement, according to a press release, was signed on Wednesday by the chairman of OPWP, Saud bin Nasser al Shukaily, and the chief executive officer of ACWA Power Barka, Nadeem Rizvi. ACWA is to also sign a usufruct agreement for the use of project land with the Ministry of Housing and a water connection agreement with the Public Authority for Electricity and Water.
The expansion project is an independent water project (IWP) to be developed on a build, own, operate (BOO) basis and will be located in Barka. The project will be constructed adjacent to ACWA Power's existing plant and will benefit from its synergies.
The additional capacity from the expansion project will help in meeting the projected shortfall in Oman's water desalination production capacity and demand for potable water, which increases eight per cent every year.
During an ordinary general meeting held on August 26, ACWA shareholders approved the signing of project agreements required for the expansion project, obtaining a loan to finance the project and entering into a supplemental O&M agreement with a related party to operate and maintain the project.
The term of the WPA will effectively expire with the existing power and water purchase agreement (PWPA). The expansion project will be funded by a syndicated loan from local and regional financial institutions.
© Muscat Daily 2012
