Singapore's Sembcorp Industries has revealed that its Sembcorp Utilities unit and Oman Investment Corp. have forged a joint venture company to build a water and power plant in Oman.
The company, Sembcorp Salalah Power & Water Co., will invest about $1bn to develop, build, own and operate the plant, Sembcorp said.
The plant will include a gas-fired power generation unit that will have a net capacity of 445MW, and a seawater desalination plant.
It is scheduled to start production in the first half of 2012.
The desalination plant will "employ reverse osmosis technology to produce 15 million gallons of water a day," Semcorp said in a statement.
Sembcorp Salalah Power & Water Co. is 60% owned by Sembcorp Utilities and 40% owned by Oman Investment Corp., shareholders of which are the Gulf Investment Corp., the National Investment Funds Co., State General Reserve Fund of the Sultanate of Oman and BankMuscat.
Sembcorp said 75% of the total project cost will be funded through 17-year non-recourse project finance loans, and 25% by shareholder loans.