Veolia Secures Five-Year Contract to Operate Oman’s Al Asilah Desalination Plant

Veolia has secured a five-year operations and maintenance (O&M) contract for Oman’s Al Asilah Desalination Plant, strengthening its role in the country’s water security and supporting the production of drinking water for communities in the South Al Sharqiyah Governorate.

The contract was awarded to Bahwan Veolia Water (BVW), a partnership between Veolia and Bahwan Engineering Company, by Al Asilah Operation and Maintenance LLC (AOM). The facility has a production capacity of 80,000 cubic metres of water per day and includes an on-site solar photovoltaic farm designed to diversify its energy mix.

Al Asilah and Sur Plants to Serve Around 600,000 Residents

The Al Asilah facility is Veolia’s fourth major desalination plant in Oman, following its operations at Sur, Barka IV and Salalah. The company said the new contract will strengthen its contribution to the country’s drinking water supply and improve operational efficiency.

Together with the Sur Desalination Plant, which has a production capacity of 131,000 cubic metres per day, Al Asilah is expected to supply high-quality drinking water to approximately 600,000 residents across South Al Sharqiyah Governorate.

The proximity of the two facilities will allow the sharing of technical resources, knowledge transfer and the application of established operational practices. According to Veolia, these measures are expected to improve efficiency and reliability across both plants.

Veolia has been operating major desalination facilities in Oman for nearly 20 years and currently supplies water to nearly 2.5 million residents through four major plants in the country.

Solar Power to Support Lower-Carbon Water Production

Under the new contract, Veolia will oversee the operation and maintenance of the Al Asilah desalination facility, including its on-site solar photovoltaic farm.

By combining its expertise in water treatment and energy management, the company aims to optimize plant performance while supporting lower-carbon drinking water production. The solar installation will help diversify the facility’s energy mix as Oman continues to strengthen the resilience and sustainability of its water infrastructure.

Philippe Bourdeaux, Executive Senior Vice President for Africa, Near and Middle East at Veolia, said desalination was central to water security in the Middle East and highlighted Oman’s potential to combine innovation, local expertise and renewable energy.

“Desalination is a cornerstone of water security in the Middle East, and Oman is a perfect example of how innovation, local expertise and renewable energy can come together to deliver resilient, lower-carbon water services,” Bourdeaux said.

He added that the Al Asilah contract strengthens Veolia’s long-term strategic partnership with Oman and supports its ambition to double the desalination capacity it operates worldwide by 2030.

Partnership Combines International Expertise and Local Capabilities

The Al Asilah Desalination Plant is owned by Al Asilah Desalination Company (ADC), whose major shareholders include Japan’s JGC Holdings Corporation and Oman’s Bahwan Group.

The contract brings together Veolia’s international desalination expertise and the local and international capabilities of its partners to strengthen water security in South Al Sharqiyah.

Bahwan Engineering Company said the partnership would support the reliable operation and long-term upkeep of essential water infrastructure while helping develop local expertise in operations and maintenance.

The company also highlighted its commitment to maintaining high standards of safety, efficiency and reliability, with the longer-term goal of expanding its services across Oman’s water sector in line with Oman Vision 2040.

Sunao Horii, General Manager of Al Asilah Operation and Maintenance, described the contract as the beginning of a new phase of cooperation after an extended negotiation process.

“It has been 672 days since we received Veolia’s Expression of Interest. Over this long journey, we have had many discussions and gone through some tough negotiations together. Today, however, is not the end of that journey. It marks the beginning of a new chapter and the start of our journey together,” Horii said, thanking those whose work helped secure the agreement.

Project Supports Oman Vision 2040 and Workforce Development

The contract aligns with Veolia’s Green Up strategic programme and Oman Vision 2040, which sets out the country’s long-term development ambitions.

Alongside water security and decarbonisation, the project will support Omanization through training and professional development for local teams. Veolia said its local, regional and global expertise would help strengthen national capabilities in the management of strategic water infrastructure.

The agreement reinforces the company’s long-term commitment to Oman as it pursues its global desalination expansion target and works to improve the operational performance and environmental efficiency of its facilities.