Veolia has been awarded a five-year Operations and Maintenance (O&M) contract for the Al Asilah Desalination Plant in Oman, the company said in a press release issued on 20 Oct 2026.
The contract, awarded through Veolia’s consolidated entity Bahwan Veolia Water (BVW), a partnership between Veolia and Bahwan Engineering Company, will cover operational support for the Al Asilah facility. Veolia said the plant has a production capacity of 80,000 cubic metres per day and is intended to serve around 200,000 residents, with the site including a solar farm as part of efforts to diversify its energy mix.
Veolia also linked the Al Asilah project to operations across the region. Together with the Sur Desalination Plant, the company said the two facilities will reinforce drinking-water production for approximately 600,000 residents across the South Al Sharqiyah Governorate. It added that the proximity of the plants will enable sharing technical resources, knowledge transfer and the deployment of proven operational practices to improve efficiency and reliability.
Fourth facility in Oman under Veolia operations
According to Veolia, Al Asilah will become the fourth state-of-the-art desalination facility it operates in Oman, following plants in Sur, Barka IV, and Salalah. The company said it currently supplies water to nearly 2.5 million residents via four major desalination plants, aligning with the objectives of its Green Up strategic program and Oman Vision 2040.
Veolia described the Al Asilah contract as a milestone project supporting its ambition to double the desalination capacity it operates worldwide by 2030. The press release said the plant is owned by Al Asilah Desalination Company (ADC), whose major shareholders include Japan’s JGC Holdings Corporation and Oman’s Bahwan Group.
Commitment to lower-carbon water and Oman’s targets
The company said its contract scope includes operation and maintenance of the desalination plant, including the on-site solar photovoltaic farm. Veolia stated it will combine water and energy expertise to optimize operational performance and support lower-carbon drinking-water production.
Veolia also said the initiative contributes to Omanization. It added that teams involved in training and professional development are intended to strengthen national capabilities for strategic water infrastructure.
In the release, Philippe Bourdeaux, Executive Senior VP Africa, Near and Middle East, said desalination is a cornerstone of water security in the Middle East and that the Al Asilah plant reflects how innovation, local expertise and renewable energy can support resilient, lower-carbon water services. He also referenced Veolia’s expanded presence in Oman and its stated ambition to double desalination capacity it operates worldwide by 2030.
Bahwan Engineering Company also commented on the partnership, saying it brings together international expertise and local capabilities for reliable performance and long-term upkeep of essential water infrastructure.
Plant timeline and shareholder background
Veolia said the Al Asilah plant was commissioned and tested in 2021 and that commercial operations began on 1 January 2022. The release described ADC as an Omani company established to develop, finance, design, construct, own, operate and maintain the plant in the South Al Sharqiyah Governorate.
In remarks attributed to Sunao Horii, General Manager at Al Asilah Operation & Maintenance, the release noted a lengthy period leading up to the contract award, beginning with an Expression of Interest shared 672 days prior, and characterized the agreement as the start of a new phase of work together.
