Construction for first phase of Oman national railway to start by end 2015
- Saipem-led consortium is understood to be the lowest bidder
- Funding structure thought to have been revised
- Project due for completion in 2018
Oman Rail is expected to award the contract for the first sector of its national railway project within the next few days, according to sources close to the project.
MEED earlier reported that Oman Rail shortlisted three bidders for the 127-kilometre rail that will link Sohar to Buraimi. These include the Saipem-led consortium, thought to have submitted the lowest financial offer, Italys Salini Impregilo and another consortium led by Austrias Porr Bau.
The latter consortium is throught to be out of the running, and the project is likely going to be an all-Italian affair.
The original funding structure for the project is understood to be split 80:20 between the GCC rail fund and Omani government. It is now understood that some changes are being proposed in terms of the funding structure for the project.
Spokespersons for Saipem and Salini declined to comment on the current status of the bidding process as well as the reported change in the projects funding structure. Both firms, however, said they expect an announcement from the client within this week at the earliest, as key directors and decision-makers from Oman Rail have returned from their holiday.
Sohar-Buraimi rail project is expected to be completed in 2018. The double track network will be designed for both passenger and freight transport. It is one of eight packages that would comprise the planned 2,135-km national railway infrastructure with a budget of about $15bn. Oman Rail is currently prequalifying civils contractors for the second rail package, which will connect Hafeet, where the first segment ends, to Dhahirah in the northwest of the sultanate.
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