The decision by Oman’s National Economy Ministry was unexpected, as China Harbour Engineering Company was known to be the lowest bidder on the project.
The client has not made its reasons for choosing the Omani-Korean bid clear, and was unavailable for comment.
The Galfar-Daewoo joint venture also saw off competition from South Korea’s Hanjin Heavy Industries, Iran’s Saff Offshore Industries Company and India’s Larsen & Toubro.
The contract includes two 410-metre docks, 2.8 kilometres of quay wall, crane foundations and office buildings.
It is being financed through a $660m loan from the Japan Bank for International Co-operation. The port is located 600 kilometres southwest of the capital Muscat.
The move is a rare setback for China Harbour, which has won several large contracts in the region recently. Earlier this month, it won a contract from the Saudi Port Authority to build the industrial port at Ras al-Zour in Saudi Arabia (MEED 11:1:08). It has partnered with the local Rafid Group on the project to form China Harbour Engineering Arabia Company.
In November 2007, the Chinese firm was also selected to build a $230m container terminal at Jeddah Islamic Port (MEED 19:12:07).
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