Oman water sector to be fully restructured by year-end

MUSCAT, MAY 21 -

Nama Holding, the grouping of government-owned power sector subsidiaries, says it plans to complete the current restructuring of the water services sector by the end of this year.

Nama Group CEO Omar al Wahaibi said the process largely mirrors the landmark unbundling and restructuring of the electricity sector that was undertaken around 2004.

“Nama Holding continues to work closely with the Public Authority for Water (Diam) to achieve the government’s initiative to restructure the water sector,” said Al Wahaibi. Nama Holding is spearheading the execution of the 20-months Detailed Design and Implementation phase, which was initiated in April 2018, and is moving forward as planned.”

Speaking at the Annual Media Briefing held at the headquarters of Oman Electricity Transmission Company (OETC) on Monday, the official said the restructuring process encompasses all of the entities associated with the potable water distribution and wastewater segments of the industry.

“The objective is to enhance the efficiency of the whole setup and expand services. As a result of the exercise, the plan is to create three companies that will operate water and wastewater services. This will be combined with the introduction of a regulator and policymaker for the sector.”

Potable water policy making, as well as distribution and supply services, are currently in the hands of Diam (with the exception of Dhofar Governorate, where the Directorate General of Water handles local distribution). Adding to the multiplicity of organisations engaged in water services is Haya Water, which oversees wastewater services across the Sultanate.

Envisioned in the post-restructuring scenario are three new companies, each of which will provide potable water and wastewater services within a specific geographical area. This integrated business model will apply to all three companies in their respective jurisdictions.

Besides enhancing administrative and operational efficiencies within the new corporatised companies, restructuring will also contribute to increased competition and delivery of sustainable services. The overarching objective is to support water security, according to officials.