Sun, 02 September 2012
MUSCAT -- Oman Power and Water Procurement Company SAOC (OPWP) and ACWA Power Barka have announced the signing of a Water Purchase Agreement (WPA) and other project agreements for the expansion of the latter's existing water desalination capacity by 10 MIGD (45,460 m³/day). The Project Agreements were signed by the Chairman of OPWP, Saud bin Nasser al Shukaily, and the Chief Executive Officer, Nadeem Rizvi, of ACWA Power Barka.
A Usufruct agreement for the use of the project land will be signed between ACWA Power Barka and Ministry of Housing. The Water Connection Agreement will be signed between ACWA Power Barka and the Public Authority for Electricity and Water. The expansion project is an Independent Water Project (IWP) to be developed on a BOO (Build, Own, Operate) basis and will be located at Barka. The expansion project will be constructed adjacent to ACWA Power Barka's existing plant and will benefit from its synergies.
The additional water capacity produced by the expansion project will help in meeting the projected shortfall in Oman's water desalination production capacity and the demand for potable water which increases by 8 per cent per annum. During their Ordinary General Meeting held on August 26, 2012, the shareholders of ACWA Power Barka approved the Company entering into the project agreements required for the Expansion Project, obtaining a loan to finance the Expansion Project and entering into a Supplemental O&M Agreement with a related party to operate and maintain the Expansion 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. Construction of the expansion project will commence before the end of Q3 2012.
ACWA Power Barka is targeting to complete this expansion project and start water production in Q4 2013. NOMAC Oman, a subsidiary of ACWA Power International, which is also the parent company of ACWA Power Barka, is intended to be the O&M provider for the expansion project and is the current O&M provider for the existing ACWA Power Barka plant. The expansion project will be built according to Omani Environmental Regulations.
Saud bin Nasser al Shukaily, the Chairman of the Oman Power and Water Procurement Company, stated that this project is a fast track project requested by the Public Authority for Electricity and Water in order to meet the expected shortfall in desalinated water particularly during the next two years. The project is one of its kind in the sense that the returned seawater from the existing Plant will be utilised as feed water to the Reverse Osmosis expansion project.
Al Shukaily congratulated ACWA Power Barka on its efforts in helping conclude the Project Agreements and wished the project every success. He also thanked the Tender Board for their cooperation and assistance. Nadeem Rizvi, CEO of ACWA Power Barka, reaffirmed the commitment of ACWA Power Barka to the power and water sector in Oman. Mohammad A Abunayyan, Chairman of ACWA Power Barka said "We are proud of our relationship with OPWP and our ability to once again demonstrate our commitment to the Sultanate by contributing to the longevity of potable water supply.
In the medium to long-term, this expansion project will prove to be a well sought solution to balance shortfalls of current desalinated water production capacity in the Sultanate. We will work diligently to play a larger role in the water and power industry in Oman in the future with creative and innovative solutions that create value."
© Oman Daily Observer 2012
