Oman’s Special Economic Zone Authority of Duqm (Sezad) has signed $265m loan agreement with China-based Asian Infrastructure Investment Bank (AIIB) to finance the construction of the commercial terminal at the port.

The loan, which Sezad said was obtained at a competitive price, will be repaid on an installment basis over a 25-year period, extendable for another five years.

Oman is one of the 50 founding member-states of the AIIB.

It is understood that Sezad is committed to completing all infrastructure projects related to Duqm Port by 2020.

In August last year, it awarded local Galfar Engineering & Contracting the OM60.7m ($157.6m) contract for the port’s construction.

The construction contract covers dredging the harbour basin to up to six metres and land reclamation to construct port service buildings.

The contract also covers the construction of breakwaters with a total length of 3.4km and an 850m fixed pier for fishing purposes.

The fisheries port will feature a wharf, pontoons, and five floating moorings for fishermen. It would also include pontoons for the Oman Coast Guard, a crane for boat maintenance, ramp for boats, marine services and facilities, service buildings, internal roads, parking lots, and repair workshops.