“To create value for stakeholders and to ensure that citizens have access to life’s most basic need – clean drinking water.”

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.

MODC

“Malakoff Oman Desalination Company Limited (“MODC”) is 100% owned by Malakoff International Limited (“MIL”) which in turn is wholly-owned by Malakoff Corporation Berhad (“Malakoff”). Malakoff, headquartered in Kuala Lumpur and listed on the Bursa Malaysia Stock Exchange with a market capitalisation of US$1.2 billion (as at 28 October 2020), is the largest Independent Power Producer (“IPP”) in Malaysia. Its core businesses include power generation, water desalination, operations & maintenance and waste management & environmental services. Malakoff owns an effective power generation capacity of 5,822 MW in Malaysia comprising six power plants that run on oil, coal and gas. On the international front, Malakoff owns assets with a power generation and water production capacity of 588 MW and 472,975 m³/day, respectively in countries such as the Kingdom of Saudi Arabia, Bahrain and Oman.

Major shareholders of Malakoff include MMC Corporation Berhad, the Employees Provident Fund (“EPF”), Malaysia’s Ministry of Finance, the Retirement Fund Incorporated (“KWAP”) and Permodalan Nasional Berhad (“PNB”) who together hold circa 80% shareholding 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 African (“MENA”) region as well as the neighbouring South-East Asian markets. In the Kingdom of Saudi Arabia, Malakoff owns a 24% stake in the Shuaibah Phase 3 Independent Water and Power Project (“IWPP”) which is one of the largest IWPPs in the MENA region and the first IWPP in the Kingdom of Saudi Arabia that delivers power and water to the cities of Makkah, Jeddah, Taif and Al-Baha. Malakoff also has a 24% stake in Shuaibah Phase 3 Expansion Independent Water Project (“IWP”). In Bahrain, Malakoff owns a 32.5% stake in Al-Hidd IWPP that supplies electricity and water to Bahrain’s Electricity & Water Authority. www.malakoff.com.my

SWMEC

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 six business units incorporating Metal Products, Transportation & Construction Systems, Infrastructure, Media & Digital, Living Related & Real Estate and Mineral Resources, Energy, Chemical & Electronics. With 72,642 employees in 136 bases in 66 countries worldwide, Sumitomo Corporation’s consolidated revenue amounted to approx. JPY 5.3 trillion in FY2019.

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, Brazil and Mexico. www.sumitomocorp.co.jp

The Company’s competitive strengths include the following:

• • 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.