Oman signs industrial estate contracts

15 April 2015

New industrial areas to be ready by end of 2016

  • Public Establishment for Industrial Estates signs contract with Larsen & Toubro for Sumail industrial estate infrastructure
  • Another contract signed with Hasan bin Backer bin Juma Trading & Contracting for the expansion of Sohar Industrial Port Area
  • Both projects will take 18 months to complete

Oman’s Public Establishment for Industrial Estates (PEIE) has signed two contracts to develop industrial estates worth RO59m ($153m).

India’s Larsen & Toubro won a RO39.6m contract for infrastructure work at Sumail industrial estate.

The local Hasan bin Juma bin Backer Trading & Contracting won a RO19.7m deal for construction works on the seventh phase of Sohar Industrial Port Area (SIPA).

The Sumail industrial estate will cover 5.5 million square metres in the first phase, with the second phase to add 2.1 million sq m.

The work involves 46 kilometres of roads, and utilities infrastructure. It also includes two wastewater treatment plants with a capacity of 3,600 cubic metres a day (cm/d) in the first phase and two water storage reservoirs with capacities of 2,500 cubic metres each.

It aims to attract investment in the food, plastics, steel, marble and other building materials industries.

The consultant is the US’ Parsons International.

The expansion of SIPA will cover 8.8 million sq m. The work involves 36km of roads, utilities and a 2,000-cm/d wastewater treatment plant.

Sohar will be home to the new $3.6bn Liwa Plastics plant, and its refinery is currently being expanded to process 187,000 barrels a day (b/d).

Work on both industrial areas is scheduled for completion in late 2016.

PEIE is studying industrial estates at Ibri and Barka. New power and water capacity is also being tendered at these sites to supply the new industries there.

Public company Majis Industrial Services manages infrastructure at SIPA. It is currently evaluating bids for contracts to build desalination and wastewater plants.

Oman’s economic diversification policies depend on attracting industry to the country, and turning into a major logistics hub. It is continuing a high capital spend through 2015 to develop the necessary infrastructure.

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