Oman's Barka 5 independent water project (IWP) is on track to commence commercial operations by 2024, as indicated Nama Power & Water Procurement Company indicated in its latest Seven-Year Statement, reports MEED.
A source close to project has also verified that construction efforts are currently in progress for this venture, which stands as the eighth IWP in the sultanate's portfolio.
In November 2020, GS Inima, headquartered in Madrid, secured the contract for developing the Barka 5 IWP, designed to accommodate a capacity of 100,000 cubic metres per day (cm/d).
In June of the previous year, GS Inima reached an agreement for an equity bridge loan with the project's lenders.
The financial advisory role for the project is Synergy Consulting, a US/India-based firm, for GS Inima.
Furthermore, GS Inima, in consortium with local contractor Sogex and Saudi Arabia's Aljomaih, also secured the development contract for another IWP in Oman, known as the Ghubrah 3 IWP, boasting a capacity of 300,000 cm/d, in the year 2020.
As outlined in Nama Power & Water Procurement Company's most recent Seven-Year Statement, the Ghubrah 3 IWP is slated to become operational in 2026.
Both seawater reverse osmosis (SWRO) projects will be governed by a 20-year water purchase agreement established between the developer and the off-taker.
Client financial advisory duties are assumed by Netherlands-based KPMG, while legal advisement is provided by the UK’s DLA Piper, and Germany’s Fichtner takes up the role of technical adviser for both undertakings.
In a 50-50 joint venture partnership, Italy's Fisia Italimpianti will partake in the engineering, procurement, and construction (EPC) contract for the two IWPs, alongside GS Inima.
The EPC contracts for the Ghubrah 3 and Barka 5 IWPs are collectively valued at an estimated $330 million.
Since 2009, Oman has awarded a total of nine IWPs, distributed across various locations such as Sharqiyah, Salalah, Sohar, Ghubrah, Barka, and Qurayyat.
Peak water demand in the sultanate's Main Interconnected System is expected to increase by an average of 2 per cent annually, from 1,172,000 cubic metres a day in 2022 to 1,387,000 in 2029, according to the state offtaker.
A higher growth rate of 5 per cent annually is expected in the sultanate's Sharqiyah zone, and 7 per cent in Dhofar.