(MENAFN- Muscat Daily) The engineering procurement and construction (EPC) contract for the first segment of Oman's railway project will be awarded in the middle of 2015 and tenders for some additional segments are also expected to be floated this year.
Speaking to media personnel on the sidelines of GCC Rail and Metro Conference 2015 on Sunday H E Ahmed bin Mohammed al Futaisi Minister of Transport and Communication said 18 companies which were shortlisted through pre-qualification process will submit technical offers on January 18 for the first segment of the rail project which cover a 207km stretch from Sohar port to Buraimi.
He said 'It will take some time to evaluate the proposals and we hope to announce the contractor for the first segment in middle of this year. There are other segments under design stage and we hope to float tenders for some additional segments this year.'
When asked whether falling crude oil prices could have an impact on progress of railway project H E Futaisi said 'The first segment is included in 2015 budget which has already been announced. We are going forward with it. Falling oil price is of course a challenge but there is a commitment among all the GCC countries to go ahead with railway project.'
Since Oman rail network is wide and much larger H E Futaisi said the government is considering different modes of financing for the project. 'We are now studying a financial model that could be a mix of bonds loans government support and other ways. However it is not finalised.'
'The railway project is a strategic and long-term project and it is difficult to link it with fluctuation in oil prices. The commitment among GCC countries is to go ahead with the railway project at least for connecting each country even with oil price falling down. But there are also rail networks and links that are within each GCC country like in Oman connecting Duqm and Salalah which are not part of GCC commitment. So for these parts each country may look for different ways to finance their projects' H E Futaisi added.
Over US$200bn are expected to be invested in over 40000km of rail networks across the GCC.
The two-day GCC Rail and Metro Conference 2015 which began on Sunday at Al Bustan Palace a Ritz Carlton hotel is hosted by Ministry of Transport and Communication.
The event is attended by highranking government officials from the GCC states and top executives from Etihad Rail Saudi Railways Organization Saudi Railway Company Qatar Rail and Oman Rail.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.