News Releases 2018

Jul. 23, 2018

Implementation of Seawater Desalination Business in Oman

Yokohama, Japan - JGC Corporation (hereinafter "JGC") announced today that Al Asilah Desalination Company S.A.O.C (hereinafter "Asilah"), in which JGC is the major shareholder, has received an award to build, own and operate a seawater desalination plant in the Sharqiyah region in eastern Oman, by the client, the Oman Power and Water Procurement Company S.A.O.C. The parties have signed finance agreements on 11 July, 2018 to extend project financing towards this project and the project has started in full swing.

The contract involves the construction, operation and maintenance for a period of 20 years on a BOO (Build⋅Own⋅Operate)basis of a seawater desalination plant with the application of reverse osmosis membrane. The plant is capable of supplying nearly 80,000 cubic meters per day, which is sufficient to provide potable water for a population of approximately 200,000, and is scheduled to commence service in April 2021. Part of the financing for the total project cost of around 20 billion yen will be provided through project financing by MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited and Shinsei Bank, Limited, whose loan would be covered by Overseas Untied Loan Insurance provided by Nippon Export and Investment Insurance. The selection of a consortium of JGC and United Infrastructure Development Company as the successful bidder is the result of positive evaluations of JGC‘s ability to apply its engineering knowledge and proven capacity to provide innovative ideas that enable the reduction of energy required to operate and its ability to keep the unit cost of the water produced low. The construction work will be carried out by a South Korean firm, Doosan Heavy Industries and Construction Co., Ltd., which is experienced in the construction of reverse osmosis membrane seawater desalination plants in the Middle East and other parts of the world.

In Oman, the demand for water is expected to increase by approximately 6 % per year as the growth in population continues while rapid urbanization makes the matter of securing sufficient potable water an increasingly urgent matter for the country. JGC will apply its project management and business execution abilities to accomplish a smooth operation of the entire project and contribute to the further growth of the country.

For Reference

Outline of Al Asilah Desalination Company S.A.O.C.
Shareholders/Investment Ratio JGC/75 %,

United Infrastructure Development Company, a unit of Bahwan Engineering Group, Oman/20 %,

South Korea - Doosan Heavy Industries & Construction Co., Ltd./5 %
Foundation December 2017