Vision
“To create value for stakeholders and to ensure that citizens have access to life’s most basic need – clean drinking water.”
History
On the back of its population growth and economic development, Oman’s daily water demand has been growing by 2% – 3% per year. Demand has been notably increasing in the metropolitan area centered on Muscat, and the Government of Oman launched multiple IWPs to address the situation. Ghubrah IWP being the first large-scale IWP in the stream, Oman Power & Water Procurement Co (OPWP) initiated a competitive bidding process in 2012. The shareholders were awarded the contract to build the Plant and hence Muscat City Desalination Company (MCDC) was established to undertake the Project.
The plant has been established under a Build, Own, Operate (BOO) scheme, which enables it to be operated beyond the Water Purchase Agreement (WPA) term of 20 years, either by extending the WPA (if agreed by OPWP), or by selling the water into the market which may exist by that time.
Shareholders
MODC
MODC is 100% owned by Malakoff International Limited which in turn is wholly owned by Malakoff. Malakoff, headquartered in Kuala Lumpur and listed on the Bursa Malaysia Stock Exchange with a market capitalisation of approximately US$2 billion, is the leading and largest IPP in Malaysia. Its core businesses include power generation, water desalination and operation & maintenance services. Malakoff owns an effective generation capacity of 6,346 MW in Malaysia comprising seven power stations and 690MW effective generation capacity overseas that run on coal, gas and oil and effective water production capacity of 444,800 m³/day in countries such as Saudi Arabia, Bahrain, Algeria and Oman. In addition, Malakoff owns 50% of the participating interest in the Macarthur Wind Farm which is the largest wind farm in the Southern Hemisphere.
Major shareholders of Malakoff include the Employees Provident Fund, Pilgrims Fund, Retirement Fund Incorporated and MMC Corporation Berhad that hold circa 75% of the listed entity.
In line with its growth by expansion strategy, Malakoff has been actively looking to venture further in the fast growing Middle East & North Africa region as well as the neighbouring South-East Asian markets.
In Saudi Arabia, Malakoff owns a stake in the Shuaibah IWPP which is one of the largest in the MENA region and the first IWPP in Kingdom of Saudi Arabia that delivers power and water to the cities of Makkah, Jeddah, Taif and Al-Baha. In Bahrain, Malakoff owns a stake in Hidd IWPP that supplies electricity and water to Bahrain’s Electricity & Water Authority, while in Algeria, Malakoff owns a stake in the Souk Tleta IWP which supplies water to Algeria’s national water company L’Algerienne Des Eaux and Algeria’s national oil and gas company, Sonatrach.
SWMEC
SWMEC is 100% owned by Sumitomo Corporation and it is an overseas investment vehicle designated for water projects in Middle East region.
Sumitomo Corporation is one of the leading general trading & investment firms in Japan developing a multifaceted business on a global scale to respond to the diverse needs of customers. Sumitomo Corporation consists of five business units incorporating Metal Products, Transportation & Construction, Media Network, Lifestyle Related Goods & Services, Mineral Resources Energy, Chemical & Electronics and the Environment & Infrastructure. With 75,448 employees in 138 bases in 67 countries worldwide, Sumitomo Corporation’s consolidated revenue amounted to approx. JPY 7.6 trillion in FY2015. Sumitomo Corporation is listed on the Tokyo stock exchange with an estimated market cap of JPY1.7 trillion.
Sumitomo Corporation is an active player in the water industry involved not only in sea water desalination, but also in water supply and wastewater treatment projects. Sumitomo Corporation’s role in the water business includes development, financing, equity participation as well as engineering, procurement and construction and O&M aspects. Sumitomo Corporation successfully operates water projects in many countries around the world, including Oman, UK, UAE, Bahrain, China and Mexico.
Board of Directors
Ahmad Fuaad bin Mohd KenaliChairmanChief Executive Officer of Malakoff Corporation Berhad since 1 October 2017. Holds a degree in Computerised Accountancy from the University of East Anglia, United Kingdom and a Business and Technology Education Council (BTEC) National Diploma in Business and Finance, United Kingdom. He is a Fellow of the Association of Chartered Certified Accountants (ACCA) and a member of Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants since year 2000. Was a board member of key subsidiaries of the DRB-HICOM Berhad Group such as Pos Malaysia Berhad, Bank Muamalat Malaysia Berhad, Edaran Otomobil Nasional Berhad, Horsedale Development Berhad, Glenmarie Properties Sdn Bhd and Alam Flora Sdn Bhd. Is currently a member of the Board of a number of companies related to Malakoff Corporation Berhad. |
Tamer CankardesVice ChairmanBachelor’s Degree in Mechanical Engineering and a Master’s Degree in Business Administration from Istanbul Technical University. Over 18 years of experience in the field of international power and water business development. |
Sultan Obaid Said Al GhaithiMemberSultan Al Ghaithi holds a bachelor’s degree in mechanical engineering and master’s degree in industrial engineering. With over 19 years in the Exploration and Production sector, he has accumulated a wealth of operational and managerial experience. Sultan began his career with Petroleum Development Oman where he started as a Well Engineer. He then moved to Weatherford International in the role of Country and Area Manager in Oman, Qatar, Bahrain and Yemen. Sultan leads Ara Petroleum LLC as Chief Executive Officer. He is also responsible for two subsidiary E&P companies operating in Oman and serves as a board member of Aminex Plc in London. |
Vishwanath SankaranarananMemberA Chartered Accountant with over 30 years’ experience, mainly in the power and infrastructure sector. He was the Group CFO of Electricity Holding Company, Oman and Board Member of Oman Power & Water Procurement Company. |
Takashi IshizukaMemberBachelor’s Degree in Economics. Over 27 years of experience in the field of international power and water business development. |
Ruswati OthmanMemberBachelor of Science Degree in Chemistry from University of Bradford, United Kingdom and a Master Degree in Business Administration (majoring in Accounting and Finance) from University of Massachusetts, Boston, USA. She has also completed the Advance Management Program at Wharton Business School. With over 30 years of experience, Ms. Ruswati Othman’s current responsibilities include managing MCB Group Accounts, Treasury Department and Corporate & Project Finance Department. She oversees the overall accounting and reporting functions in the MCB Group; heads the team for corporate finance exercises such as equity and debt financing, as well as mergers & acquisitions and project finance exercises for companies within the MCB Group. She also serves as a member of the Board in numerous subsidiaries and associate companies of Malakoff. |
Management
Subrina ThiagarajahCEOBachelor’s Degree in Chemical Engineering from the University Technology Malaysia. In a career spanning over 23 years in Malakoff, she has worked her way up the ladder after starting her career at Malakoff in 1994 as a Project Executive in the Technical Services and quality assurance department. She was also involved in the commercial review and negotiations for Malakoff’s business development initiatives in power and water projects in Asia and the Middle East region. Her most recent portfolio of achievements includes being the Project Director for the Ghubrah Independent Water Plant in Oman and the Commercial Lead of the 1000MW coal fired power plant in Malaysia. |
Tomotaka InoueCFOBachelor Degree in Agriculture from the Faculty of Agriculture in Kyoto University, Japan and a Master Degree in Global Environmental Studies from the Graduate School of Global Environmental Studies in Kyoto University, Japan. Started his career in Sumitomo Corporation in 2006 in Power & Water Investment Dept. Over a span of 11 years in Sumitomo he has worked his way up the ladder learning various aspects of water industries internationally as well as finance and accounting fields. During his experience in Accounting Dept., he has acquired the U.S. CPA license in Washington State (Number: 32314) in 2014. |
Ahmed Al ShereiqiOperation EngineerMr. Ahmed Al Shereiqi joined Muscat City Desalination Company in March 2013. He has more than 10 years of multi-discipline work experiences acquired mainly in administration, public relation, and operations. Mr. Ahmed Al Shereiqi obtained his Bachelor of Science in Engineering (Mechatronics) from Caledonian College of Engineering in 2015. He had spent several years at Modern Liberty Services LLC, Derat Al-Sahra International LLC and Abu Sameer LLC handling trading and construction activities. In his current position, he has been liaising with the project stakeholders and proactively assisting the day to day operation activities within the Plant to fulfill the client expectation in water production and demand. |
Competitive Advantages
- Largest operating SWRO desalination plant at a single location in Oman;
- Well-established contractual framework with long term WPA, ensuring cash flow protection against adverse events such as buyer risk events
and force majeure; - Stable and predictable cash flows, resilient to potential shocks in electricity prices and water demand until 2035;
- Proven, long-term reliable SWRO desalination technology;
- Experienced Project Founders with an established track record being able to transfer skills and know-how;
- Fully operational Project operated by an experienced operator comprising of experienced and skilled operational personnel respecting highest levels of Omanisation requirements; and
- Continuous demand for water, ensuring opportunities for incremental growth in revenue after the expiration of the current off-take contract.
Social Responsibility
MCDC endeavours to be socially accountable and responsible in strict compliance to environmental aspects.