GS Inima Launches 2.4 Trillion KRW 'Oman Seawater Desalination' Project in Earnest

[Asia Economy Reporter Kim Hyemin] GS Inima, a subsidiary of GS Engineering & Construction and a global water treatment company, announced on the 27th that it has completed the financial agreement for funding the Oman seawater desalination project and will officially start the project.

The total investment cost for the 5th phase private seawater desalination project (IWP) commissioned by the Oman Authority for Electricity Regulation is approximately 130 million USD. About 70% of the investment will be secured through direct loans, guarantees from the Export-Import Bank of Korea, and local financing, while the remainder will be raised through agreements with KEB Hana Bank and bridge loans.

This project involves constructing a seawater desalination facility with a capacity of 10,000 cubic meters per day approximately 60 km west of Muscat, the capital of Oman. GS Inima holds 100% of the EPC (Engineering, Procurement, and Construction) and operation rights independently. GS Inima will operate the facility for 20 years, with expected sales estimated at about 700 billion KRW. Commercial operations are scheduled to begin in the second quarter of 2024.

Previously, GS Inima signed an EPC contract between GS SAOC, the special purpose vehicle (SPV) for this project, and GS Inima Barka EPC execution corporation, and construction began at the end of March. With the completion of this financial agreement, the project is now on track.

In addition to this project, GS Inima also plans the Al Ghubrah Phase 3 project. This project involves building a reverse osmosis (RO) seawater desalination plant with a capacity of 300,000 cubic meters per day in the coastal area of Muscat, capable of supplying drinking water to approximately 1 million people daily. The expected sales over 20 years, including EPC, are estimated at about 1.7 trillion KRW.

Yoonhong Heo, Head of New Business Division at GS Engineering & Construction, stated, "By advancing the Oman Barka project, it will be an opportunity to expand our technological capabilities not only in the Middle East but also into the Asian market. The water treatment business is a future growth engine for GS Engineering & Construction and a representative eco-friendly business in the ESG era, and we will solidify our status as a global leader in this field."