Arab Shipbuilding & Repair Yard Company (Asry), a leading ship and rig repair yard in the Arabian Gulf, has agreed a build-operate-transfer (BOT) contract for the completion and upgrading of a reverse osmosis seawater desalination plant.

The agreement, which has an estimated $8.6 million budget and April 2015 operational target, was signed at Asry by all parties concerned, said a report in the Gulf Daily News (GDN), our sister publication.

The desalination plant project, previously managed by Gemsil Aquatech Services, had an initial production capacity of 3,000 tonnes per day.

However, under Gulf Marketing House's new guidance, the capacity will be expanded to 7,000 tonnes per day.

As such, they have contracted Spanish firm Enoxa, to supply all technical resources and equipment required for the upgrade and commission of the plant. This will not only meet the future requirements of Asry, but also contribute to serving the Bahrain community by contributing to daily national requirements of sweet water.

"The plant will be built according to the latest state-of-the-art water desalination technology by Inexa, a technical partner of Gulf Marketing House," Asry chief executive Nils Kristian Berge said.

"The plant is expected to operate in early April 2015, and the cost is estimated at $8.6 million.”

He said that the duration of the contract is 25 years and Gulf Marketing House will provide Asry's entire requirement for sweet water for the yard and related operations, in addition to supplying sweet water to Asry's workers' quarters.

"This project is a major success for greater cost-effectiveness at Asry," Berge added.

At the end of the 25-year contract, the ownership of the water desalination plant will transfer in full to Asry, general manger of technical resources and business development Magdy Mustafa said.

He highlighted the fact that the new plant will be run on a commercial basis and boost sweet water supply in Bahrain.

Gulf Marketing House chairman Shaikh Khalid bin Khalifa bin Hamad Al Khalifa welcomed the signing of the BOT contract with Asry.

"This contract will further enhance the reputation of Gulf House Group in the local market, and boost the co-operation between the two companies," Shaikh Khalid said.

The contract was signed on behalf of Asry by Asry chairman Shaikh Daij bin Salman Al Khalifa, Berge and Mustafa in the presence of finance and accounting manager Satyan Laxman and legal affairs manager Badreldin Elsimat.

On behalf of the Gulf Marketing House, a subsidiary of Gulf House Holding Group, the contract was signed by Shaikh Khalid, Shaikh Bader Khalid bin Khalifa, group financial consultant N S Malhotra and project manager Abdulla Ahmed Ali Alfahal. - TradeArabia News Service