ACWA Power-led consortium wins Salalah water project
The project was awarded to a consortium of ACWA Power, Veolia and DIDIC by the Oman Power and Water Procurement Company.
MUSCAT: A consortium led by Saudi-based ACWA Power has been awarded the Salalah Independent Power Project (IPP), which will have a capacity to generate 25 million imperial gallons per day (MIGD) of desalinated water.
The project was awarded to a consortium of ACWA Power, Veolia and Dhofar International Development and Investment Holding Company (DIDIC) by the Oman Power and Water Procurement Company (OPWP), said a press release. The project will be located in Salalah, Dhofar region, and will use reverse osmosis technology.
The desalination project is being procured by OPWP under a build-own-operate framework on the back of a 20-year water purchase agreement (WPA). Dhofar Desalination Company, the pro- ject company, will be owned by ACWA Power, Veolia Middle East and DIDIC.
“Water is the most vital commodity for human life, as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desalinated water and power,” stated Paddy Padmanathan, President and chief executive officer (CEO) of ACWA Power.
The engineering, procurement and construction of the plant will be handled by a consortium of Fisia Italimpianti SpA and Abeinsa Infraestructuras Medioambiente SA. The operations and maintenance of the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman and DIDIC.
Apart from ACWA Power-led consortium, seven other groups — a consortium of Degremont Middle East and Itochu Corporation; and GS Inima Environment, Hyflux, JGC Corporation, Marubeni Corporation, Sembcorp Utilities and Tecnicas de Desalination de Aguas — were also in the race to bid for the project.
The desalination project, called Salalah IWP III, will be able to meet the growing demand for water. The new project is required to meet an annual average growth of 9 per cent in potable water demand for the next seven years— from 42.6 million cubic metres in 2016 to 78.4 million cubic metres in 2023, according to a seven-year outlook report released by OPWP.
“Oman is a strategic country for ACWA Power — our portfolio of six plants can generate over 4,300 megawatt of power and 42 million gallons per day of desalinated water. ACWA Power is committed to ensuring the success of this project while creating real value for the local communities. As such, the project will play a key role in meeting the increasing demand for water in Oman, which is expected to be on an average about six per cent per annum over the next seven years,” remarked Thamer Al Sharhan, Managing Director at ACWA Power.