This Law comprising 55 Articles aims to regulate the production, supply, and treatment of water and wastewater in the Sultanate of Oman. The Ministry of Agriculture, Fisheries, and Water Resources is tasked with implementing government policies for water and sanitation development, establishing governance principles, selecting and financing research projects, promoting private sector investment, providing reports and statistics, offering opinions on water and sanitation matters, advising the Council of Ministers on regional and international linkages, and collaborating with relevant authorities and companies in accordance with the Law. The Public Services Regulatory Authority has the following main powers (i) can issue regulations, decisions, and directives to implement the law and regulate various aspects of the water and sanitation sector, such as networks, equipment, quality, fees, licenses, permits, etc.; (ii) can amend the license conditions for public interest, after notifying and hearing the license; (iii) some activities, such as self-supply or others determined by the authority, require a permit from the Authority, which can be modified by the Authority. The licensee cannot transfer the license without the authority’s approval. The licensees must comply with the general and specific conditions of their licenses, such as keeping accounts, following rules, paying fees, protecting consumers, providing information, etc. Article 7 specifies that a license is required for activities such as water production, transport, supply, wastewater management, treatment, and more, as determined by the Authority (regulated activities).
Chapter Two outlines licensing provisions. Article 12 specifies general conditions for licenses, including restrictions on assignment, procedures for suspension or cancellation, annual fees, compliance with water network rules, monitoring and reporting, adherence to regulations, government policies, and protection measures. Article 13 grants the authority discretion to include additional conditions related to collateral, partnerships, contracting, network management, economic purchasing, connection fees, and other conditions as deemed necessary. In particular, are detailed conditions to practice the following activities (i) water production; (ii) water transport; (iii) water supply; (iv) import and export water, or either of them (only granted to the Oman Power and Water Procurement Company or operating companies); (iv) collecting and transporting wastewater; (v) wastewater treatment and discharge; (vi) transport of treated water; (vii) supply of treated water.
Chapter Three concerns the terms of reference for the Oman Power and Water Procurement Company (OPWP), emphasizing its commitment to purchasing water capacity and output from independent water projects and associated water, continuing contracts until their expiration. OPWP is also tasked with bulk supply to operating companies under wholesale supply tariffs. Article 28 stipulates the Authority's supervision over OPWP's procurement operations, allowing direction for new water capacity contracts based on economic procurement or public interest, with a mandate for fair and transparent competition in accordance with the Law. About the tariffs, the Law establishes that tariff bases are determined considering the economic impact on licensees, the effect on the water and sanitation sector's operations, and the social and economic impact on subscribers. The Authority prepares tariff bases and submits them to the Council of Ministers for approval. The approved tariff is then published in the Official Gazette and on the Authority's website. Current tariff bases continue until the adoption of new ones, and the Authority determines the tariff for new wholesale purchases, adhering to established controls and methodologies. Article 39 grants the Authority the power to implement market liberalization procedures, including changing market structure, establishing new operating companies, merging existing ones, and promoting competition among licensees in the water and treated water supply activities. The scope of market liberalization extends to waiving government economic interests in relevant companies, allowing potable water import/export, and facilitating the sale of water capacity and output by licensees to entities other than specified ones.
Regarding offences and penalties, Article 46 grants the Authority's employees the capacity of judicial seizure for the application of this law and its regulations. Article 47 states that crimes outlined in the Law will be punished as specified, while Article 48 outlines penalties, including imprisonment and fines, for offenses like failure to provide information, violating conditions, and tampering with water meters.
The Law aims to protect water from pollution, and in particular establishes that (i) no one is allowed to discharge the waste resulting from commercial, industrial, agricultural, or medical activities that contain elements that pose a danger or require special treatment in the sewer network of the licensee, unless with his approval, and fulfilling the conditions set by the licensee for that, and approved by the authority; (ii) the licensee must comply with the rules of water networks or any other rules issued or approved by the authority, and follow the government policy on environmental protection. The licensee must also monitor and verify the compliance with the relevant water specifications, and submit a report to the authority accordingly.