(MENAFN- Muscat Daily) The long-awaited usufruct agreement for the development of the US$2.5bn mixed-use tourism and real-estate project known as the Omagine Project in Oman will be signed on July 1.
The entire project will be designed developed and operated by Omagine LLC a subsidiary of US-based Omagine Inc.
The Omagine Project is planned to be developed on 1mn sqm of beach-front land in Seeb.
In a filing with the US Securities and Exchange Commission Omagine Inc said 'On June 24 Omagine LLC was informed in writing by [Oman's] Ministry of Tourism (MoT) that the signing ceremony for the usufruct agreement will take place at the Ministry of Housing (MoH) in Muscat on July 1.'
The company said that on July 1 Omagine LLC will also pay the usufruct agreement registration fee to MoH and within two to three days thereafter the MoH will deliver a stamped and registered copy of the agreement to Omagine LLC evidencing the developer's ownership of the usufruct rights over the land constituting the project site.
Omagine LLC had signed a development agreement (DA) with the Oman government on October 2 2014. The DA provides that the Oman government and Omagine LLC will enter into a usufruct agreement. The DA was ratified by the Ministry of Finance on March 11 2015 as required under Omani law.
The DA and usufruct agreement grant Omagine LLC usufruct rights over land constituting the Omagine site (including the right to sell such land).
The term of the usufruct agreement is 50 years (with five years free rent) and the RO20250 usufruct registration fee which Omagine LLC will pay MoH is based on the 45 years of the term of the usufruct agreement on which rent is payable.
The Omagine Project is planned to be an integration of cultural heritage entertainment and residential components including a high-culture theme park and associated buildings shopping and retail establishments restaurants and approximately 2100 residences.
Earlier this year Omagine Inc said the construction contract for the project was expected to be signed with CCC-Oman by the end of June. However no further disclosure has been given regarding the expected date of signing of the construction contract.
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