Oman Tourism Development Company (Omran) has awarded design and consultancy contracts for the $390m first phase of the Port Sultan Qaboos Waterfront tourism project.

UK-based Foster & Partners, German/local Hoehler+AlSalmy have been awarded the contract for detailed design of the key waterfront attractions.

HD23, a joint venture of London’s Harper Downie and local 23 Degrees North are the lead design consultants and detailed design engineers for phase one. 95 per cent of their design work will be carried out in country.

The local Blizzard Brothers have been awarded the first construction contract, for Souq al-Mina, which will be an incubator for local small and medium enterprises (SMEs).

The UK’s Driver Group is the cost management and quantity surveying consultant. Other detailed design and masterplanning contracts have been awarded, and kick-off meetings took place this week.

The tender process for infrastructure works could begin as early as mid-2017, with vertical building following shortly after. The whole $1.3bn project, which has four phases, is due for completion in 2020.

Local Omantel will provide smart city solutions.

Local Al Siyabi Group has also signed a contract to invest in a four star hotel near the Mutrah fish market. This is the first investment deal signed for the project.

Private sector investment

Omran intends to finance the project through plot sales to investors, as well as a 49 per cent stake sale to private sector investors in the developer, the Waterfront Company. Discussions are at an advanced stage.

“We have had a lot of interest from the private sector, and we have given priority to local investors,” says James Wilson, CEO of Omran. “There will be zero government funding… Omran has sold non-core assets to deploy the cash, but we have a huge land value. We have taken a few investors to the board for approval, but for most we are still studying their potential.”

Wilson believes enough Omani investors are now lined up to fund the whole project, although Omran has talked to GCC and international investors. Omran is now carrying out due diligence to ensure that investors have the capabilities to develop and manage hospitality, retail or mixed use projects as part of the Waterfront.

Omran will primarily contribute land as equity, and carry out basic infrastructure works.

“We create opportunities, secure government approvals and put in the infrastructure,” says Wilson. “Then we bring in partners that can contribute money, expertise, and bring the market with them from their home country.”

At least one major international tourism investor could come in on Port Sultan Qaboos.

Omran is not currently working on a loan deal, but is in discussions with at least two local banks on funding options.

“We will generate money by selling plots for the infrastructure,” says Salah AlGhazali, chief investment officer at Omran. “If we sell all the plots at the price we want we will have no need for debt, but as a commercial entity we should use some. We are talking to local and international banks about financing strategies, to keep our options and the dialogue open. If we need debt we don’t want to be rushing. We are also looking at contractors who can bring export credit.”

Phase one of the project

The first phase of the project is divided into six zones:

• Zone 1: Fisherman’s wharf and beach, food & beverage outlets, 400-space car park, a 140-room four-star hotel, a public square and playground
• Zone 2: entertainment around a public square, including a cinema, and children’s village, and food & beverage outlets
• Zone 3: a themed shopping mall, a four-star boutique hotel, 50 luxury apartments, the main square with food & beverage outlets and a floating auditorium
• Zone 4: a mixed use island with a three-star hotel and apartments
• Zone 5: grade A office space, residential areas, boutique retail and food & beverage space
• Zone 6: a 100-room five-star boutique hotel on the end of the pier, styled as an Omani castle

Phase one also includes a four hectare Jebel Rock Mountain Waterpark and the Souq Al Mina SME business incubator. Omran is in the final stages of completion on a design and build agreement for the waterpark, and discussions with key investors are due for completion shortly.

Cruise ships will continue to call at the terminal, which includes a duty free are and customs facilities, while the Al Inshirah National Ferry Terminal will offer direct lines to Iran.