MUSCAT: Oman’s growing industrial sector is set to benefit from a number of infrastructure projects designed to enhance capacity in the Sultanate.
Significant projects are under way to improve logistics, power and water capacity, particularly in the industrial zone of Sohar, which has been targeted for growth by the government. Moreover, Oman is pioneering new technology to improve the utilization and conservation of existing resources.
Recent months have seen the government invite tenders for pre-qualification for the proposed Oman National Railway, a multibillion-dollar project designed to create a freight and passenger railway linking the Sultanate’s main urban and industrial centers.
Phase one of the project will see the construction of a 280-kilometer line that will link the industrial zone of Sohar with the capital Muscat.
According to the Oman Observer, a total of 31 firms submitted pre-qualification bids to become project manager of the National Railway by the June 14 deadline, including Mott MacDonald, Arup Gulf and Bechtel.
The contract is expected to be awarded in the first quarter of 2011.
The strong international interest generated by the National Railway project demonstrates the confident nature in which the Omani government has proceeded with its infrastructure development plans thus far.
Mid-June, for example, also witnessed the opening of the region’s first inland clearance depot (ICD) at Muscat Container Depot. The ICD will enable the handling of containers destined for the Oman International Container Terminal at a point closer to Muscat, effectively creating an extended gateway for the Port of Sohar, including Customs clearance.
The ICD will improve logistical links between Muscat and the industrial zone at Sohar.
Further improvements to the logistical infrastructure around Sohar are also in the offing, with the announcement in the last week of June that Strabag Oman had won the contract to construct the airfield for Sohar Airport, at a cost of $71.39 million.
Strabag beat another strong international showing of eight bidders to win the contract, which will add to its successful bid for $97 million first phase of the airport, won last year.
When it becomes operational in 2013 as a domestic airport, Sohar Airport is expected to support the growth of cargo, courier and passenger traffic to the country’s northern region.
Beyond transport and logistics, industry in Oman is set to benefit from additional power and water desalination capacity thanks to a new independent power producer contract awarded at the end of May to a consortium led by GDF Suez.
The $1.7 billion contract will involve the construction of two Greenfield gas-fired plants – Barka 3 and Sohar 2 – with a combined capacity of 1500 Mega Watts. According to media reports, the plants will also feature a combined water desalination capacity of 268,000 cubic meters per day.
With the Oman Power and Water Procurement Company predicting rising demand for desalinated water of 13 percent a year to 320.6 million cubic meters a year by 2016 and power demand also growing at the robust rate of 11 percent a year, the new plants will be vital to maintaining stable economic expansion in the Sultanate.
Finally, the Sultanate has been leading the way again recently in the use of experimental technology to improve the utilization of existing water resources.
Oman’s southern region of Dhofar experiences a damp season with dense fog caused by the Indian Ocean monsoon, known as the "Khareef".
This unique phenomenon is a major tourist attraction for the second-largest city, Salalah, but recently officials in the Environment and Climate Affairs Ministry have formed a joint project with Mitsubishi Corporation to become the first in the region to use fog-harvesting technology to capture water and create an artificial pond.
The experimental project eventually hopes to capture 300 cubic meters of water during the Khareef season, which runs from late June until September, which can be stored and used later.
Whilst a modest contribution, fog-harvesting technology may one day be a low-energy method of supplementing Oman’s agricultural water resources, thus preserving supplies of potable water.
