Cascal BV (Biwater Capital) has replaced Ogden Yorkshire Water Company - a joint venture between the UK's Yorkshire Water and Ogden Corporation of the US - in the RO232 million ($603 million) Muscat Wastewater Project, it was reported.

Ogden pulled out of the consortium formed to handle the project led by the Galfar Group, one of Oman's biggest business houses, a report said.

Cascal, an international water utility company, was founded early last year as a joint venture between Nuon of Holland and the UK's Biwater.

The wastewater project is considered among the most ambitious undertaken by Oman's private sector. The first phase of the project was won by Galfar and Ogden for RO100 million.

Ogden's pullout was reported to be part of its global strategy to shed its Asian and Middle East operations.

The company, which also changed its name to Covant, has pulled out of or relocated a few projects in India as well, it was reported.

The wastewater project is significant since 40 per cent of households in Muscat do not have sewage facilities and therefore there is no system to make use of the huge amount of waste water.