Trowers & Hamlins acts on major independent water project in Oman

International law firm Trowers & Hamlins has advised the sponsor group comprising Sumitomo Corporation (Japan), Malakoff Corporation Berhad (Malaysia) and Cadagua SA (Spain) on the financial close of Oman's largest independent water project (IWP). The IWP, valued at circa USD300 million, reached financial close on 18th September 2013. 

The project will be funded by Japanese financial institutions, led by the Japan Bank for International Cooperation, through a build-own-operate project finance structure. The Ghubrah IWP will comprise a desalination plant with a daily treatment capacity of 190,000 m3. It will use reverse osmosis technology to supply fresh water equivalent to the daily amount consumed by approximately 800,000 people. The plant will be run by Muscat City Desalination Company under a 20 year Water Purchase Agreement with Oman Power and Water Procurement Company, and commercial operation is scheduled to commence on a fast-track basis in October 2014. 

Trowers & Hamlins acted as local counsel to the sponsor group on all aspects of Omani law relating to financial close and the establishment of a specialist operation and maintenance company. The consortium was appointed preferred bidder for the Ghubrah IWP in November 2012. 

The team was led by energy partner Edward Rose.