PROJECTS

Water Sector Restructuring, Oman

The problem

Oman is the 19th most water-stressed country in the world. The government was spending $447 million on water services each year, but with falling oil prices and a budget deficit at 10% of GDP this was unsustainable.

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.

Impact

The government is implementing the recommended reforms. Our impact assessment estimates that they should create economic benefits for Oman, and reduce the fiscal cost of the sector while extending piped water and wastewater services to households.

The client

NAMA Holdings

Our team

Andrew Sprott

Andrew Sprott

Practice Leader
David Ehrhardt

David Ehrhardt

Chief Executive

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.  Terms | Privacy | Credits | Sitemap

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap