Water Sector Restructuring, Oman

How we helped

We helped implement a strategy to merge various providers into three regional water and wastewater utilities. We developed business plans for the utilities to enable them to finance $30 billion in new capital investment over 10 years, through sale of shares and debt financing. We calculated cost recovery tariffs, developed a new regime for economic regulation, and recommend a subsidy regime to prevent tariff shock while ensuring that the new companies were financeable. We carried out a Regulatory Impact Assessment to test that the economic gains from the reform outweighed the costs.