Contractors fear instability caused by falling oil prices and request extension for rail tender in Oman
The Oman Rail Company (ORC) has once again granted more time to bidders to submit their offers for the $15bn segment 1 section of the national rail project.
While technical offers must be handed in by 18 January, commercial bids are now due on 1 March. This will be the second extension in less than a month, and it comes as several bidders requested more time due to the business uncertainty caused by falling oil prices, according to local media reports.
Segment 1, covering a 207-kilometre stretch from Sohar Port to Buraimi, is a priority due to its proximity to the Oman link of the pan-Gulf rail network.
ORC prequalified 18 consortiums to bid for the contract.
The contract involves almost all aspects of rail design, engineering, supply, construction, installation and commissioning.
In 2013, Italian state railway group Italferr won a 28m ($37.3m) deal for the consultancy services for the preliminary design of the national railway.
Omans overall rail network involves the construction of a 2,244km-long network that will ultimately connect the sultanates major ports and cities, including Muscat, Sohar, Duqm and Salalah, in addition to linking with the UAEs rail network. It is part of a wider investment in transport.
The first segment is due to start operating in 2018.
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