PHOTO
19 October 2015
Oman Power and Water Procurement Company (OPWP), the sole procurer of all new electricity generation and co-located water desalination capacity in the Sultanate, has identified preferred bidders for two major water schemes planned at Sohar and Barka on Oman's Batinah coast.
Separate consortiums led by Spanish water services giant Valoriza Agua SL and Japanese conglomerate Itochu Corporation have been selected by the wholly government-owned procurer for the development of Independent Water Projects (IWPs) at Sohar and Barka respectively, the Observer has reliably learnt.
The move paves the way for final negotiations with the two bidding groups leading to the award of separate licenses for the development, design, construction, ownership, financing, operation and maintenance of the respective IPPs. Formal project agreements linked to either IPP are due to be inked shortly, according to OPWP officials.
Madrid-based Valoriza Agua had teamed up with Oman Brunei Investment Company and Sogex Oman LLC in bidding for the two IPPs.
Itochu Corporation had joined forces with Degremont, International Power (Dubai Branch) and W J Towell & Co LLC. In all, seven consortiums had submitted firm offers for the two water schemes when bids were opened in August. Five other consortiums -- led by Abengoa, GS Inima, Hyflux, JGC and Veolia respectively -- were unsuccessful in their bids.
Tendered together, the two water projects represent the single largest procurement of water desalination capacity in the nation's history to date. Total investment in the two ventures is estimated at $550 million.
Earlier, in a statement, OPWP Chief Executive Officer Ahmed al Jahdhamy had underlined the importance of the two schemes to the strategic goal of securing the Sultanate's burgeoning potable water needs.
Spin-offs in the form of employment generation for citizens and business opportunities for Small and Medium Enterprises (SMEs) are potentially significant as well, he noted.
As water-only schemes, the two projects will not have any new power generation facilities co-located on the site, but will be supplied with electricity from the grid. 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.
Also envisaged within the scope of the Barka IWP is a new seawater intake and outfall system that will provide the raw seawater and discharge brine to the sea. However, raw seawater for the Sohar IWP will be supplied by Majis Industrial Services Company (MISC), which operates the seawater intake and outfall system at Sohar Port. MISC will also build a new pump station to serve the new IWP's needs.
Oman Power and Water Procurement Company (OPWP), the sole procurer of all new electricity generation and co-located water desalination capacity in the Sultanate, has identified preferred bidders for two major water schemes planned at Sohar and Barka on Oman's Batinah coast.
Separate consortiums led by Spanish water services giant Valoriza Agua SL and Japanese conglomerate Itochu Corporation have been selected by the wholly government-owned procurer for the development of Independent Water Projects (IWPs) at Sohar and Barka respectively, the Observer has reliably learnt.
The move paves the way for final negotiations with the two bidding groups leading to the award of separate licenses for the development, design, construction, ownership, financing, operation and maintenance of the respective IPPs. Formal project agreements linked to either IPP are due to be inked shortly, according to OPWP officials.
Madrid-based Valoriza Agua had teamed up with Oman Brunei Investment Company and Sogex Oman LLC in bidding for the two IPPs.
Itochu Corporation had joined forces with Degremont, International Power (Dubai Branch) and W J Towell & Co LLC. In all, seven consortiums had submitted firm offers for the two water schemes when bids were opened in August. Five other consortiums -- led by Abengoa, GS Inima, Hyflux, JGC and Veolia respectively -- were unsuccessful in their bids.
Tendered together, the two water projects represent the single largest procurement of water desalination capacity in the nation's history to date. Total investment in the two ventures is estimated at $550 million.
Earlier, in a statement, OPWP Chief Executive Officer Ahmed al Jahdhamy had underlined the importance of the two schemes to the strategic goal of securing the Sultanate's burgeoning potable water needs.
Spin-offs in the form of employment generation for citizens and business opportunities for Small and Medium Enterprises (SMEs) are potentially significant as well, he noted.
As water-only schemes, the two projects will not have any new power generation facilities co-located on the site, but will be supplied with electricity from the grid. 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.
Also envisaged within the scope of the Barka IWP is a new seawater intake and outfall system that will provide the raw seawater and discharge brine to the sea. However, raw seawater for the Sohar IWP will be supplied by Majis Industrial Services Company (MISC), which operates the seawater intake and outfall system at Sohar Port. MISC will also build a new pump station to serve the new IWP's needs.
© Oman Daily Observer 2015
