Oman awards $250 million contract for desalination project

Dec. 30, 2014

Singapore-listed Hyflux Ltd, in consortium with National Power and Water Co., LLC, has won a $250 million contract to design, build, own and operate a seawater reverse osmosis desalination plant in Qurayyat, Oman.

Singapore-listed Hyflux Ltd, in consortium with National Power and Water Co., LLC, has won a $250 million contract to design, build, own and operate a seawater reverse osmosis desalination plant in Qurayyat, Oman.

The proposed Qurayyat independent water project will have the capacity to produce 200,000 cubic meters per day of potable water. State-owned Oman Power and Water Procurement Company (OPWP) will purchase the water produced by the plant under a purchase agreement with a term of 20 years.

The facility is expected to start commercial operation by May 2017.

Hyflux will provide turnkey engineering, procurement and construction (EPC) in a contract valued at $210 million, as well as operation and maintenance of the plant. The project is not expected to have a material financial impact on Hyflux for the financial year ending December 31, 2014.

The letter of award from Oman Power and Water Procurement Company followed an international tender for the project. This is the third independent water project in Oman, after similar projects at Sur and Ghubra, the Times of Oman reported.

Hyflux offers a range of water solutions, from seawater desalination to water recycling and wastewater treatment, including membrane bioreactor and potable water treatment.

Last month the company opened a desalination plant in Magtaa, Algeria, with a capacity of 500,000 cubic meters per day — the largest seawater reverse osmosis desalination plant in Algeria and on the African continent.

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