Oman takes IDB loan for water supply project

The Sultanate of Oman and the Islamic Development Bank (IDB) have signed istisna'a and istisna'a agency agreements under which IDB will provide the Sultanate with a US$176 million loan (about RO68 million) to finance 86% of the cost of water supply project from Wadi Dhaiqah to Muscat and Quriyat, which costs RO79 million.

As per the agreement, the loan tenure is 14 years and will be repaid through bi-annual installments for 10 years with a four-year grace period.

The project will help in meeting the growing demand for water, especially in the Governorate of Muscat and its wilayats. It will also enhance the potable water supply network, improve the production capacity of potable water by adding about 32 million cubic meters of water per day, connecting the wilayat of Quriyat, including Daghmar and Hail Al Ghaf villages with the water network (100%) and provide almost 7 million cubic metres per day of irrigation water to irrigate about 325 hectares of agricultural land.

A long-term programme for continuous water supply with less cost compare to water desalination has been developed. The programme will alleviate the deterioration of underground water quality from excessive use and the seeping of seawater, as well as the effect on agricultural production.