Oman’s Medical City will be developed on a public-private partnership (PPP) basis, according to tender documents seen by MEED.

The Health Ministry and state-owned Oman Investment Fund (OIF) have selected UK/local Carillion Alawi as a strategic partner to carry out the project.

OIF invited consultants to bid for market feasibility and best-use studies in April.

This will be one of the first PPP projects outside the utilities sector in Oman, and comes ahead of a planned PPP law.

The UK’s EY has submitted its PPP framework study to the Omani government. Muscat is expected to go ahead with flagship PPP schemes before the law is finalised, to demonstrate the concept and speed up the application of PPP.

The Medical City will consist of four PPP hospitals with a total capacity of 1,250 beds, site infrastructure and educational institutions, alongside commercial areas to boost revenue streams.

OIF plans to fund the RO300m ($780m) project through a combination of equity and debt. Carillion is expected to bring UK Export Finance on board to support the financing of the scheme.

The build-own-operate-transfer contract will have a duration of between 15 and 30 years, while the facilities should be developed in phases over 15 to 25 years.

The investor will also have to manage more than 10,000 staff, about half of them medical professionals, and provide affordable accommodation.

The commercial area will include private hospitals, specialist clinics, hotels, retail outlets and residential areas for patients and staff.

It is hoped the development will eventually attract medical support and pharmaceuticals companies to move there.