GS Engineering & Construction (GS E&C) announced on the 11th that its subsidiary, GS Inima, has secured the Shuweihat S4 Reverse Osmosis Independent Water Project ordered by the UAE's Water and Electricity Authority (EWEC).
This newly secured contract, valued at approximately 920 billion won, is the first tangible outcome following the Memorandum of Understanding (MOU) on water resources cooperation signed between the Korean government and the UAE in January. Various support from government agencies, including the Ministry of Environment and the Export-Import Bank of Korea, has facilitated Korean companies' penetration into ongoing water projects in the Middle East.
The project undertaken by GS Inima in the UAE is located approximately 250km west of Abu Dhabi, the capital of UAE. The business involves adding a desalination facility with a daily capacity of about 320,000 cubic meters to the existing desalination plant complex.
The project model follows the BOO (Build-Own-Operate) format. GS Inima will handle the project financing and EPC (Engineering, Procurement, Construction). After completion, it will jointly own and operate the facility with TAQA (Abu Dhabi National Energy Company) for 30 years.
The EPC contract is worth about 420 billion won, and the revenue from 30 years of operations is expected to be around 500 billion won, making the total projected contract value approximately 920 billion won. GS Inima was selected as the preferred negotiator for the project last December and is set to finalize financial agreements within the year. They aim to commence commercial operations in the second quarter of 2026.