The Oman Power and Water Procurement Company SAOC has granted ACWA Power Barka the green light to expand its existing water desalination capacity by 10 MIGD (45,460 m³/day).
The expansion project is an Independent Water Project to be developed on a BOO (Build, Own, Operate) basis and will be located at Barka 65 km north of Muscat, the capital of the Sultanate of Oman.
The expansion project will be constructed adjacent to ACWA Power Barka's existing plant. Additional water capacity produced by the expansion project is expected to help Oman meet a projected shortfall in water desalination production capacity.
A new Water Purchase Agreement will be executed for the expansion project which will work alongside the existing Power and Water Purchase Agreement.
The expansion project will be funded by a syndicated loan from local and regional financial institutions. Construction of the expansion project will commence before the end of Q3 2012 with a completion date to start the production of water slated for Q4 2013.
Mohammad A. Abunayyan, chairman of ACWA Power Barka and owning company ACWA Power International said "In the medium to long-term this expansion project will prove to be a well sought solution to balance shortfalls of current desalinated water production capacity in the Sultanate."
Abunayyan added that the contract will help increase the company’s contracted desalination production capacity from the current 2.3 million m3/day to 5 million m3/day by 2014.