Supporting a Seawater Desalination Project in Oman
- Area: The Middle East
Demand for water in Oman is projected to increase at an annual average rate of five percent from 2013 through 2019 as its population and economy continue to grow.
JBIC signed a loan agreement with Muscat City Desalination Company S.A.O.C. (MCDC) in Oman for the Al Ghubrah IWP Project. MCDC was established jointly by Sumitomo Corporation, a Malaysian company, and a Spanish company to implement this project. The loan is provided on a project financing basis. In this project, MCDC will build a new seawater desalination plant in Muscat, the capital city of Oman, and sell desalinated water to Oman Power and Water Procurement Company S.A.O.C., a state-owned company, for a period of 20 years on a BOO basis.*1 The amount of water supplied by this project will meet the water demand of about 800,000 people. The desalination plant will thus serve as an important water supply source.
- *1BOO (Build, Own, and Operate) is a form of financing whereby a private sector company build, own and operate a plant, such as a seawater desalination plant, throughout the contract period.