South Korea’s Doosan Heavy Industries and Construction will take part in a RO230bn (US$203.9mn) desalination project in Oman.
The contact is the latest in a series of contracts the desalination plant builder has won recently.
The Korean company is part of a consortium led by Japanese engineering company JGC Corporation and Oman’s United Infrastructure Development Corporation (UIDC), which has won the engineering, procurement and construction deal to build a seawater desalination facility in Oman by April 2021.
The desalination plant is expected to be built in Oman’s Sharqiyah region, 220 kilometers southeast of the capital Muscat. The plant will be designed using the reverse osmosis method. When completed, it will be able to supply 80,000 tons of fresh water, enough to meet the water demand of 200,000 people a day.
The consortium members will set up a special purpose company called Al Asilah, which will oversee the overall development and operation of the plant. JGC will fund 75% of the company, while UIDC will fund 20% and Doosan Heavy 5%, respectively.
With the deal, Doosan Heavy has re-entered Oman, whose desalination market has been expanding by more than 5% per year on rapid urbanization and population growth.
“We’ve broadened our business scope from construction to development and operation, and expect to collect a steady stream of rental fees over the next 20 years,” said a company official.
Doosan Heavy has won 28 desalination projects over the past 30 years across the Middle East and Latin America, including Saudi Arabia, United Arab Emirates, Oman, Kuwait and Qatar.