Omani govt to procure first project under PPP Law

@conradprabhu –

The Omani government launched on Tuesday a competitive process for its first infrastructure project for implementation via the public-private-partnership (PPP) route governed by the landmark Law of Partnership between Public and Private Sectors (The PPP Law), promulgated by Royal Decree 52/2019.

The Ministry of Finance, which has the mandate to procure projects and services via the PPP route, issued a request for Expressions of Interest (EoI) from interested investors in the development, management, operation and maintenance of the Liwa Fishery Harbour Project on the North Al Batinah coast. The competitive procurement process is being pursued in coordination with the Ministry of Agriculture, Fisheries and Water Resources, it noted.

The Liwa project is among a shortlist of initiatives being prepped by the Ministry of Finance for implementation on a PPP basis. Others in the shortlist, disclosed by the Ministry earlier this year, include another multipurpose seaport development at Al Musannah in South Al Batinah Governorate, school buildings for the Ministry of Education, dialysis centres and a drug rehabilitation facility for the Ministry of Health, and a dedicated truck road from Thamrait to Salalah in Dhofar Governorate.

The selected developer will be invited to build on Liwa’s relatively rudimentary harbour infrastructure to provide a range of support facilities to catalyse the growth of a thriving fisheries-centric economy around Liwa. Current facilities include nearly 1.5 kilometres of breakwater arms, 100-metre-long fixed dock and a pair of floating berths.

In addition to an upgrade of this infrastructure, the government envisions the potential for private investment in, among other things, a full-fledged fish market, ice-making and refrigeration facilities, boat-building and repair workshops, fish processing and value-adding plants, fish waste processing and disposal, and other commercial activities. Opportunities for the inclusion of a marina for leisure boats, watersports, and other tourism, hospitality, dining and entertainment facilities may be explored as well.

For its part, the Ministry of Agriculture, Fisheries and Water Resources will make available around 45,000 sq metres of land in the vicinity of the harbour for commercial investment and development under a long-term lease agreement signed with the developer.

While the Liwa Fishery Harbour Project is set to the first infrastructure development to be procured under the new PPP Law, there are fairly recent and successful templates to show how PPP-based seaport developments are modeled.

Under a long-term lease agreement signed with the Ministry of Agriculture, Fisheries and Water Resources, Falcon Tourism Investment (a subsidiary of prominent Omani developer Al Siyabi Group) is upgrading Barka Fishery Harbour at a cost of $130 million that includes a lavish waterfront development to serve as a new landmark for shopping, entertainment, leisure and hospitality.

As part of its obligations, the developer has committed to the construction of a full-fledged, modern fish market complex. The project will also exploit its waterfront location to offer adventure watersports and boat racing activities, in addition to a 4-star luxury resort and serviced apartments.

In Taqah (Dhofar Governorate), the Ministry has signed a deal with Al Madina Taqah, a wholly owned project company of Al Madina Real Estate, to transform the Taqah fish harbour into a tourism and leisure destination as well. As the Master Developer, Al Madina will develop this site at Taqah into a mixed use destination featuring tourist elements, including a marina for leisure boats, among other tourism related facilities.