An ongoing restructuring of Oman’s water sector will spawn the creation of three water companies providing integrated water services (encompassing potable water distribution and wastewater services) each with jurisdictional authority over a distinct geographical zone of the Sultanate, a high-level official revealed here yesterday.
Dr Ali al Ghafri, Deputy Chairman for International Relations at the Public Authority for Water (Diam), said a team of consultants is currently charting a strategy for the restructuring of the water sector, which is predominantly administered by Diam presently.
The announcement came at the opening of the Oman Energy & Water Conference and Exhibition 2019, which kicked off at the Oman Convention & Exhibition Centre (OCEC).
According to Diam officials, plans for the restructuring of the water sector date back to 2013 when the government set up a high-level steering committee to oversee the integration of potable water and wastewater services as part of a wider overhaul of this key industry. Represented on this panel are top officials of the Ministry of Finance, Supreme Council for Planning, Ministry of Regional Municipalities and Water Resources, Pubic Authority for Water and Authority for Electricity Regulation.
Potable water policymaking, 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). New water projects are procured by Oman Power and Water Procurement Company (OPWP), a member of Nama Group, at the specific request of Diam based on demand growth assessments made jointly by the two sides. Adding to the multiplicity of organisations engaged in water services is Haya Water, which oversees wastewater services across the Sultanate.
Seeking to streamline policymaking and improve efficiencies across the water sector, the government issued directions for the restructuring and unbundling of the sector similar to how the electricity sector was restructured in 2004-5, say officials.
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, according to Diam. This integrated business model will apply to all three companies in their respective jurisdictions.
The longer-term goals behind the restructuring exercise, Diam points out, are manifold. 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, officials stressed.
The new entities are expected to embrace industry best practices and internationally accepted technical standards and specifications in the delivery of water services to consumers in their respective jurisdictions. As part of their respective mandates, they will also commit to, among other goals, espouse rationalised consumption trends, water conservation, waste reduction, and elimination of network losses.
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