Oman issues tender for $1bn road project

20 May 2014

Prequalification bids submitted by 33 firms for Oman’s Diba-Lima-Khasab project

Oman’s Transport & Communications Ministry has issued a tender for project management consultancy services for a project to design, build and operate the second section of the new road connecting Khasab and Lima in the Musandam governorate in Oman.

The project involves building a new 65-kilometre stretch of road that will connect the town of Khasab on the peninsula’s north coast and the remote town of Lima on the eastern coast, which is not currently accessible by road. The successful bidder will also build as many as seven tunnels totalling 7,320 kilometres in length, including a 2.2km-long tunnel that will be the longest of its kind in the sultanate.

The project also entails building a total of 18 wadi and valley bridges extending a total distance of 3,790km. In addition, two major interchange bridges will be built at key intersections along the route. Furthermore, the selected contractor will also be required to operate and maintain all assets linked to the venture for a 20-year period. It marks the first time that a design, build and operate procurement strategy has been incorporated into a major civil construction project in Oman.

The deadline for bids is 7 July.

A total of 33 companies submitted prequalification documents in August 2013 for the main construction contract for the project, including South Korea’s Daewoo Engineering & Construction, Germany’s Hochtief, India’s Larsen & Toubro, Egypt’s Orascom and China State Construction.

Oman continues to develop large road projects as it seeks to bolster its economy by developing a modernised and integrated transport infrastructure.

Earlier in May, India’s Nagarjuna Construction Company submitted the low bid for package 2 of the Batinah Expressway project in Oman. The new 265km-long expressway, which is Oman’s biggest road scheme, will create the first dual four-lane motorway in the sultanate, linking Muscat to the new Sohar Port and the UAE border.

The project has been divided into six packages, with only package 2, which covers a 45km stretch from Suwaiq to Shinas, not under contract.

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