Executive Viability Abstract
This feasibility study evaluates the development of a large-scale Sea Water Reverse Osmosis (SWRO) plant in Oman to address the growing potable water deficit. With a focus on the Independent Water Project (IWP) model, the study covers technical viability, infrastructure costs, and a 20-year financial projection, aligning with Oman Vision 2040.
Return on Investment
14.5%
Payback Span
8.5 years
Net Present Value
$185,000,000
IRR Index
12.8%
## Introduction
Oman faces a consistent increase in water demand of approximately 5-7% annually due to urbanization and industrial expansion. This study explores the development of a 300,000 m³/day desalination facility.
## Market Analysis
The Oman Power and Water Procurement Company (OPWP) is the sole off-taker, providing a guaranteed market under long-term Water Purchase Agreements (WPA). The market is characterized by high barriers to entry and strong government support for privatized utility infrastructure.
## Technical Feasibility
Utilization of advanced SWRO technology is recommended over thermal desalination due to lower energy intensity. The facility will require high-efficiency energy recovery devices (ERDs) and specialized intake systems to mitigate the impact of recurring red tide events in the Gulf of Oman.
## Financial Projections
The total estimated CAPEX is $450 Million. Revenue is generated through a two-tier tariff system: a capacity charge (covering fixed costs and debt service) and an output charge (covering variable costs like chemicals and energy).
## Risk Assessment
Key risks include fluctuating energy prices, environmental impacts on marine life, and potential delays in grid connection infrastructure.