Boston, MA -- (SBWIRE) -- 08/28/2012 -- BMI View: Under Oman Power & Water Procurement Company's (OPWP's) new seven-year forecast, total water demand (excluding Salalah) is projected to increase by 5% a year up to 2018, reaching 269mn m3/d that year. The southern Salalah area will see a slightly higher water demand rate, at 6%, rising to 95,000m3/d in 2018. But the fastest growth trajectory will be found in the Duqm zone, where peak demand will grow by 53% in the period, from 3,000 m3/d to 40,000 m3/d. OPWP's forecasts appear to be grounded in a realistic sense of the sultanate's future consumption trend. The government's efforts to keep expanding its desalination capacity under privately managed operations looks to be a coherent plan to keep demand and supply in lockstep. Overall, Oman represents a textbook example of future planning in the Gulf region.

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The key trends and developments in Oman's water sector are:

- Oman has consolidated its status as an attractive place for private water developers to do business, backing a series of independent water projects (IWPs) and independent water and power projects (IWPPs) in which the private sector is playing the decisive role in ramping up desalination capacity.
- The increasingly strong demand outlook for Oman's water sector will prompt a renewed focus on IWPs - and with it, more scope for international companies to secure some major contract awards. Alongside a pair of new IWPs planned for Quriyat and Suwayq - of 40mn gallons/day (g/d) and 50mn g/d capacities respectively - the Oman authorities in the form of utlility Oman Power and Water Procurement Company (OPWP) are also planning an IWP at Ghubrah. In line with the growing demand, OPWP is preparing to tender these new projects earlier than anticipated.
- The Public Authority for Electricity & Water (PAEW) has requested OPWP procure an additional 89mn g/d for the Interconnected Zone by 2018. OPWP may also have to consider expanding or replacing capacity at Ghubrah and Barka 1 in this period. New desalination capacity additions are also expected to be announced during 2012 for the Sur region.

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