A consortium comprising mainboard-listed Hyflux and National Power and Water Co. has received a letter of award for an international tender to design, build, own and operate an independent water project in Oman from the government-owned Oman Power and Water Procurement Company (OPWP).

The project is worth an estimated US$250 million (S$328.4 million), Hyflux annunced on Friday.

The project involves a seawater reverse osmosis desalination plant with a designed capacity of 200,000 cubic metres per day.

Under the letter of award, the consortium will need to further finalise details of the project with OPWP, and the award is contingent upon satisfying certain conditions.

The project is scheduled to commence commercial operations by May 2017 under a 20-year water purchase agreement with OPWP.

Hyflux's role includes turnkey engineering, procurement and construction (EPC) as well as operations and maintenance of the plant. The value of the EPC contract is US$210 million.

The project is not expected to have a material financial impact on Hyflux for the financial year ended 31 December 2014.