Oman is set to give a green signal to build the Gulf's first private wastewater project after a delay of over three years. The RO232 million ($600 million) project had been dogged by financial and technical differences between its builders and the Oman government since 1997, but an agreement is now in sight.

"The consortium for the Muscat Wastewater project has submitted a revised proposal to the government and the signing of a concession agreement between the two parties is expected soon," it reported.

The 32-year concession would be structured on a build-own-operate-transfer (BOOT) basis and the consortium will not only take over the existing pipeline network but also add additional pipelines, pumping stations, sewerage treatment plants and waste disposal systems to the existing network, the report said.

The two-phase project will serve 600,000 people in Muscat governorate. The first phase would take six to eight years to complete and the second phase will take another seven years.

The project has been dogged by delays since its conception. After the MoU was signed in 1997, the government insisted on offering a 40 per cent stake to the public. The promoters then decided to contribute the entire equity of RO30 million, which led to one of its partners, Ogden pulling out and Cascal coming in. Other consortium members are Galfar Group, BankMuscat, Sayyid Qais bin Tariq al Said and Yaqub Al Harthy.