Oman Power and Water Procurement Company (OPWP) will award contracts for two desalination plants worth RO400 million ($1 billion) to be developed as independent water projects (IWP) in the fourth quarter (Q4) of the year, a report said.

The plants in Barka and Sohar will enter into commercial operation by Q2 2018, added the Oman Observer report.

OPWP will purchase the potable water produced by the projects under water purchase agreements (WPA) with a term of 20 years.

The scope of the projects includes the design, construction, ownership, financing, operation and maintenance of high-efficiency desalination facilities with an output of 531,000 cu m per day.

This project is considered the largest desalinated water capacity procured ever in Oman, Ahmed Al Jahdhami, CEO of OPWP was quoted as saying.

Seven pre-qualified applicants submitted the final bids, including consortiums led by JGC, GS Inima, Valoriza, Veolia, Itochu and Abengoa, and Hyflux - which tendered on its own.