Sharqiya Desalination

On 17 January 2007, the Ministry of Housing Electricity and Water (MHEW) and the Company entered into a Water Purchase Agreement (WPA) and a Water Connection Agreement (WCA). Pursuant to Royal Decree 92/2007, the functions and assets of the MHEW in relation to the electricity and water related sector and other water related functions (including the right to sign contracts necessary for the management of the water sector) were transferred to the PAEW. The WPA and WCA required the Company to purchase the Existing Plant and construct the New Plant, operate and maintain these facilities, make available the capacity of the facilities and sell its desalinated water output exclusively to the PAEW. The Company also entered into an “Asset Sale Agreement” dated 17 January 2007 with the RAEC to purchase the Existing Plant.

The Project Founder Agreement requires the Founders to float the Shares on the MSM through an IPO offering 35% of the share capital of the Company to the public. Following the IPO the Company will convert from an SAOC to an SAOG.

On 10 July 2014, Oman Power and Water Procurement Co. SAOC and the Company entered into an Amended and Restated Water Purchase Agreement to build a new desalination plant adjacent to the Company’s existing plant. Post plant expansion the combined plant capacity will be increased from 17.66 MIGD to 29 MIGD.