A consortium led by Saudi Arabia's ACWA Power has been awarded a contract to develop the Salalah Independent Water Project.
Veolia and Dhofar International Development and Investment Co (DIDIC) are also a part of the consortium that was awarded the contract by Oman Power and Water Procurement Company (OPWP).
Engineering, procurement, and construction (EPC) activities for the development will be delivered by a separate consortium, comprising Fisia Italimpianti and Abeinsa Infraestructuras Medioambiente.
Operations and maintenance (O&M) works will be carried out by a consortium of Veolia Middle East, NOMAC Oman, and DIDIC.
The plant will be located in Dhofar region and will have the capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology .
OPWP is procuring the contract through the build-own-operate (BOO) model under a 20-year water purchase agreement (WPA).
Dhofar Desalination Company, the company developing the project, will be owned by the consortium.
Commenting on the development, Thamer Al Sharhan, managing director at ACWA Power, said: "Oman is a strategic country for ACWA Power – our portfolio of six plants can generate more than 4,300 megawatts of power and 42 million gallons per day of desalinated water.
"The project will play a key role in meeting the increasing demand for water in Oman, which is expected to be, on average, about 6% per annum over the next seven years."
2017 has been a positive year for ACWA Power, which is headquartered in Riyadh.
This August, it was announced that ACWA Power had secured three solar photovoltaic (PV) power plant contracts in Egypt.
The deal, which was awarded under Round 2 of the Feed-in-Tariff (FiT) programme, will see the Saudi Arabia-headquartered company develop, finance, build, own, and operate the plants.
Located in Begban’s Aswan province, the PV power plants will boast an aggregate capacity of 165.5MWp, and will be developed at a total investment value of approximately $190m (SAR712.5m).
Hosted by the Government of Egypt, the power purchase agreement (PPA) was attended by Eng Gamal Abd-Al Rehem, chairman of the Egyptian Electricity Transmission Company (EETC), and Mohammad Abunayyan, chairman of ACWA Power, as well as other dignitaries.
The PV power plants are expected to achieve financial close and commerce construction by Q4 2017. Once operations commence in 2018, the projects will power 80,000 houses while saving approximately 156,000t of CO2 per year, compared to conventional methods of generation.
ACWA Power will conduct the contracts in partnership with Egypt-based Tawakol and Hassan Allam Holding.