Oman Power and Water Procurement Co (OPWP) has given the permission for ACWA Power Barka to establish a second seawater reverse osmosis (RO) plant with a capacity of 12.5 million imperial barrels per day (MIGD), or 57,000 m3 in Barka, said ACWA Power in a filing to the Muscat Securities Market (MSM) on Sunday.

Carrying out the phase-two project would not only lead to value creation for its shareholders, but also support the national grid with the supply of clean water, ACWA Power said, adding that “The company will proceed for obtaining required approvals to take the project forward.” The Company started commercial supply from its 10 MIGD seawater RO expansion project phase one in May, which is now providing potable water to the national grid.

Demand for water in the north of Oman is expected to increase by six percent annually, from 238 million m3 in 2013 to 349 million m3 in 2020, according to OPWP's seven-year statement.

Owned by ACWA Power Barka, the Barka I power and desalination plant operated under a power and water purchase agreement (PWPA) with OPWP.

OPWP HAD in its seven-year statement noted that the phase-two project in Barka is projected to be contracted with ACWA Power Barka for operation from October 2015.

Worth highlighting, the Company’s net profit amounted to OMR 8.82 million during the first nine months of 2014, compared to OMR 7.08 million in the same period a year earlier. Its revenue rose from OMR 31.63 million in 2013 to reach OMR 33.8 million in 2014. The growth in revenue is due to the sale of water from the expansion project and higher output revenues from the existing facility.