GS Engineering & Construction, headquartered in Seoul, South Korea, has been awarded a contract to build, operate and own a desalination plant in Oman, informs the Korea Herald.
The firm’s water services subsidiary, GS Inima, will work on and operate the Barka 5 Independent Water Plant in Oman for 20 years, after it signed a financing agreement with the Oman Power & Water Procurement Company.
The facility will be located 60km west of the capital Muscat and when completed – likely in 2024 - will desalinate 100,000 cubic meters of water per day.
The desalination plant will be implemented on a build-own-operate (BOO) model and has an estimated value of $1.86 billion.
Of the $130 million that will be needed for building the plant, GS E&C will be procuring 70% of the expenses from the Export-Import Bank of Korea, and 30% from KEB Hana Bank, reported the Korea Herald, citing company documents.
The president of GS E&C Huh Yoon-hong said: “The Oman Barka project will be an opportunity for our company to expand its presence across the Asian market, not only in the Middle East.”
"The water treatment project is GS E&C’s future growth engine and representative eco-friendly project, and will solidify our status as a global leader in this field," he added.