The local Galfar Engineering & Contracting Company has won a RO40.5m ($105m) contract to build phase two of Ras al-Hadd airport in Oman.

The Transport & Communications Ministry awarded the contract to Galfar on 24 February, according to a source at the company.

The deal involves the construction of a 4-kilometre-long runway, taxiways and aprons, as well as the provision of fuel hydrant facilities, navigation aids and associated facilities.

The runway will be able to accommodate the Airbus A380 aircraft once phase two is complete in 2012.

In line with plans to boost trade and tourism in Oman, the government is building the $200m Ras al-Hadd airport on the Sharqiyah coast so passengers will not have to travel by road from Muscat.

Desert Line Projects, a local contractor, won the contract for phase one work in 2008. This involves the construction of access roads, communications and power facilities.

The tender for phase three is scheduled to be issued by the end of 2010 and will involve the construction of a passenger terminal, an air traffic control tower, boarding bridges, fire-fighting facilities, baggage-handling facilities, and security alarms.

Galfar also recently won a contract worth RO10m from the health ministry to build an accident and emergency department at Khoula Hospital, according to a company statement.