Mubasher: Galfar Engineering and Contracting said on Thursday that its associate company International Water Treatment LLC (IWT) paid the applied delay penalty.

IWT committed to the award decision in Arbitration proceedings with its client Muscat City Desalination Company SAOC and paid the applied delay penalty as liquidated damages and associated costs adjudged by the award, according to a bourse filing.

The final impact of the award on Galfar's consolidated accounts will be OMR 3.121 million, which exceeds the previously estimated by the company of OMR 2.426 million, representing 30% share of $21.0 million net impact.

Galfar has 30% shareholding in IWT along with the shares held by Companies Cadagua (Spain) and Wabag (India), the statement said.