An Omani consortium led by the Galfar Group is set to sign a 32-year concession agreement with the government to develop a water and sewerage network in Muscat, Teheran Times reported Thursday, quoting a consortium member.
"The government has given a deadline of May 15 for the consortium to sign the agreement," Ganesan Sridhar, deputy general manager of Bank Muscat, a member of the consortium, told AFP, the paper said.
"Both parties have reached an understanding on water tariff and compensation to be paid to the government for taking over the existing pipeline network," Ganesan said, noting that some minor regulatory issues are remaining now, but will be sorted out soon."
The concession is structured on a build-own-operate-transfer (BOOT) basis, and the consortium will take over the existing pipeline network and add more pipelines, pumping stations, sewerage treatment plants and waste disposal, he said.
Of the total costs, which is estimated by $600 million, $78 million will be raised from promoters as equity capital, while the rest will be borrowed from financial institutions. When a memorandum of understanding on the much-delayed project was signed in July 1997, the government insisted that a 40-percent stake in the company should be offered to the public by way of an initial public offering – Albawaba.com
