Oman Power and Water Procurement Company (OPWP) and ACWA Power Barka have signed a Water Purchase Agreement (WPA) for the expansion of existing water desalination capacity by 10 MIGD (45,460 m³/day). The Project Agreements were signed on 29 August 2012 by the Chairman of OPWP, H.E. Saud Bin Nasser Al Shukaily, and the Chief Executive Officer of ACWA Power Barka , Nadeem Rizvi.
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 constructed adjacent to ACWA Power Barka’s existing plant for synergies. The additional water capacity produced by the expansion project will help in meeting the projected shortfall in the Sultanate of Oman’s water desalination production capacity and the demand for potable water which increases by eight per cent per annum.
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.
The 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 utilized as feed water to the Reverse Osmosis expansion project.