Omani nationals offered stake in Al Ghubra desalination plant

Muscat City Desalination Company (MCDC), the joint venture set up to run Al Ghubra desalination plant, Oman, is publicly offering its shares for sale.

The offer reflects an agreement with the Omani government that shares in the water plant operations company must be made available to Omani nationals.

The deal, which represents 35 per cent of share capital, is open until 18 December 2017, and is available to Omani and foreign nationals, priced at OMR 0.116 ($0.30) a share.

MCDC has a 20-year water purchase agreement with Oman Power and Water Company (OPWP) that runs to 2034.

The company was established to run Al Ghubra desalination plant by a consortium of Malakoff International, Sumitomo Corp., and Cadagua, who won a build, own operate contract on the project in 2012.

The seawater reverse osmosis desalination plant has capacity of 191,000 m3/d, and cost $215 million.

The shares are to be sold on Muscat Securities Market, and the advisor is Bank Muscat.