GS Inima Wins Omani Seawater Desalination Project Worth KRW 2.331 Trillion

Location map of the Oman project contracted by GS Inima.

[Asia Economy Reporter Donghyun Choi] GS Engineering & Construction’s Spain-based subsidiary, water treatment company GS Inima, has secured a mega seawater desalination project worth an estimated 2.331 trillion KRW in Oman, Middle East.

On the 19th, GS Engineering & Construction announced, "Our wholly owned subsidiary GS Inima has received Letters of Award (LOA) from the Oman Power & Water Procurement Company for two projects: Al Ghubrah Phase 3 and Barka Phase 5 Independent Water and Power (IWP) projects." Both projects are BOO (Build-Own-Operate) schemes, where GS Inima will be responsible for financing, construction, and 20 years of operation. The expected revenue is 1.634 trillion KRW for Al Ghubrah Phase 3 and 697 billion KRW for Barka Phase 5, totaling 2.331 trillion KRW. Since constructing the world’s first reverse osmosis (RO) plant in 1967, GS Inima has continuously participated in global desalination projects.

The Al Ghubrah Phase 3 IWP project involves constructing a reverse osmosis seawater desalination plant with a capacity of 300,000 cubic meters per day in the coastal area of Muscat, the capital. This volume can supply potable water to approximately one million people daily, making it the largest single-scale desalination project among GS Inima’s projects. The total investment is 275 million USD. GS Inima will hold 52% equity in the SPC with operational rights, 50% equity in EPC, and 51% equity in operation and maintenance (O&M). Construction began in Q2 2021, with a target completion of 34 months, and commercial operation is scheduled to start in Q2 2024, followed by 20 years of operation.

The Barka Phase 5 IWP project is located about 60 km west of Muscat and will feature a seawater desalination facility with a capacity of 100,000 cubic meters per day. The total investment is 129 million USD. GS Inima will hold 100% operational rights and 50% equity in both EPC and O&M. Commercial operation is expected to begin in Q2 2023.

Previously, GS Engineering & Construction, together with GS Inima, started joint research to commercialize the world’s first ‘Seawater Desalination Renewable Energy Innovation Technology’ developed in Singapore, a global leader in water treatment markets. In July, leveraging its water treatment technology, GS Inima agreed to participate in the Smart Aquaculture Cluster project promoted by Busan City, further strengthening synergies. This recent order is expected to accelerate GS Engineering & Construction’s new business initiatives.

Yoonhong Heo, Head of New Business Division at GS Engineering & Construction, stated, “This project is a stable operation business that sells desalinated water to the public sector at a fixed price over a long period, including EPC, capital procurement, and operation management. We will solidify our position as a global leader in seawater desalination.”

This content was produced with the assistance of AI translation services.