SINGAPORE - Hyflux has signed a water purchase agreement to build a water desalination plant in Oman - its largest in the sultanate.

Hyflux was awarded the Qurayyat Independent Water Project on March 25 by Oman Power and Water Procurement Company SAOC (OPWP), following the signing of the water purchase agreement between OPWP and Hyflux's subsidiary, Qurayyat Desalination SAOC (Qurayyat Desalination Company).

Under the agreement, desalinated water from the plant will be supplied to OPWP for a period of 20 years, from 2017 to 2037. This will add another 200,000 cubic metres per day of drinking water to the country's water supply.

The seawater reverse osmosis (SWRO) desalination plant will be located in Qurayyat, in the Muscat governorate.

Hydrochem (S), a wholly-owned subsidiary of Hyflux, will be the engineering, procurement and construction contractor for the next construction phase. The operation and maintenance of the project will be performed by a subsidiary to be incorporated in the Sultanate of Oman.

Hyflux executive chairman and group chief executive Olivia Lum noted that this project will be important in meeting Oman's growing demand for water.

Hyflux is proud to contribute to Oman's long-term water sustainability, she added.

The project is expected to have a material financial impact on Hyflux for the financial year ending Dec 31, 2015.