Wednesday 28 July 2021

GS E&C unit lands two seawater desalination projects in Oman

MUSCAT, November 22, 2020

South Korean-based construction major GS Engineering & Construction (GS E&C) said its key subsidiary GS Inima has won two seawater desalination projects in Oman.
A top water treatment company based in Spain, GS Inima will be carrying out both the projects in the build-own-operate (BOO) method. 
Announcing the projects, GS E&C said it had already received a letter of award (LOA) from Oman Power & Water Procurement Company for the third stage of the Al Gubra project and the fifth stage of the Barka project.
As per the agreement, GS Inima will be in charge of financing, construction and operation of these projects for 20 years. 
The Korean  group said the Phase III of the Al Gubra project will see the construction of an independent 300,000-cu m RO-type seawater desalination plant in the coastal area of Muscat. 
Estimated at $275 million, it is the largest-ever single desalination project promoted by GS Inima. Once completed, the plant can supply water to about a million people a day, it added.
Under the agreement, GS Inima will hold a 52 per cent stake in a special purpose company which will operate the plant, a 50 percent stake in engineering, procurement and construction (EPC) and a 51 percent in operation and management (O&M). 
The company is expected to break ground for the project in the second quarter of 2021 for completion 34 months later. It aims to start its commercial operations in Q2 2024 and operate it for 20 years.
On the Barka independent water plant (IWP) project, the Korean construction giant said the Phase V of the project will create a 100,000-cu-m seawater desalination facility about 60 km west of Muscat at an investment of $129 million. 
Under the agreement, GS Inima will have 100 per cent management rights and a 50 per cent stake in EPC and O&M. Its commercial operations are scheduled to kick off in the second quarter of 2023.
GS E&C's estimated sales from the operations of these two facilities stand at 1.634 trillion won and 697 billion won, respectively. 
In another development, Italian water desalination infrastructure services giant Fisia Italimpianti has signed up as a joint venture partner alongside GS Inima for carrying out the EPC works at both the Omani projects.
Milan-based Fisia Italimpianti, a unit of the Webuild Group, revealed that it had won two EPC contracts worth a combined $330 million for the two projects. Fisia Italimpianti has a 50 per cent stake in both joint ventures, it added.-TradeArabia News Service


More Construction & Real Estate Stories

calendarCalendar of Events