Oman railway obtains public utility status

30 December 2015

Royal decree changes status for second phase of rail project

The second phase of the 2,135 kilometre Oman National Railway is to be implemented as a public utility project, which means Oman Rail has been granted the right to directly expropriate or take properties and land needed for the completion of the project.

Phase 2 of the railway project comprises the area between Hafeet in the governorate of Al-Buraimi, close to the borders with the UAE, and Fahoud in the Al-Dhahirah governorate.

The decree, signed on 20 December, was to take effect immediately.

The award for the main contract of the first segment of the railway has been delayed. It is understood that an Italian-led consortium, fronted by Saipem, and Salini Impregilo, are the frontrunner for the Sohar-Buraimi rail segmen.

Industry sources say the changes to the financial structure of the project are being discussed. The original plan was for the GCC rail fund to take on 80 per cent of the project and the rest to be paid for by the Omani government.

 

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