Utico, the Middle East’s leading full service utility based in the UAE, has announced it is considering sustainable investments in Oman, informs Muscat Daily. The company believes it can offer customers the world’s lower water tariffs.
Last week, the Emirati company signed a 35-year Water Purchase Agreement (WPA) and the Shareholder Agreement (SHA) for the Hassyan Sea Water Reverse Osmosis (SWRO) Plant with the Dubai Electricity and Water Authority (DEWA).
Backed by the Oman Investment Authority, and through its Oman subsidiary MajisIndustrial Services, Utico is positioning itself to provide value to Oman’s water sector and is hoping to materialise investments this year. The company intends to channel capital and know-how to the country, and contribute to socio-economic progress.
The CEO for the MENA region and head of global investments at Utico, Hussain Allawati, said in a press release: “In line with Oman’s 2040 Vision, we will invest into sustainable projects in Oman; Oman will be in the top three countries in terms of our investment target in the next five years. This will also bring the subsidies lower and protect consumer tariffs from increase”.
The Dubai IWP contract has been a major achievement for Utico, providing the world’s lowest tariff and showing its capacity and quality to deliver on sustainable development. With a capacity of 120 million gallons per day and facilities to expand production, the Dubai IWP would be the largest desalination plant in the world.
“The Dubai win shows the company’s ability to deliver sustainable returns to its shareholders in addition to bringing in efficiencies to government long-term concessions. This has been made possible with Utico’s innovative approach and the vertically integrated model encapsulating all elements of the value chain”, said Allawati.
He added that governments in the region are expanding their desalination capacity; as well, increasing the contribution of key sectors such as agriculture will require a cost-effective water supply.
Allwati noted that Utico is “well positioned to capture the opportunities in the sector and is currently evaluating public markets for both debt and equity to expand our capital base”. And he added the company “will deliver superior risk adjusted returns to our investors and capital providers”.