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Oman: Duqm Port Commercial Terminal and Operational Zone Development

SUMMARY

STATUS
Approved
MEMBER
Oman
SECTOR
Transport
E&S CATEGORY
Category B
PROJECT NUMBER
000013

FINANCING

APPROVED FUNDING
USD265 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
October 18, 2016
APPRAISAL REVIEW/FINAL REVIEW
November 14, 2016
FINANCING APPROVAL
December 8, 2016
LATEST FIELD VISIT
August 2021
LOAN CLOSING/LAST DISBURSEMENT
June 30, 2021

OBJECTIVE

The objective is to enhance the potential economic benefits from Duqm port development through improved transport efficiency, strengthened logistics, facilitated mineral exports, and reduced supply chain delivery time and costs for the wide spectrum of industries in the new Duqm Special Economic Zone and its broader hinterland.

DESCRIPTION

The following is the summary of planned activities under the project:

(i) Construction of port related infrastructure, including access road, terminal building, and Operational Zone facilities. It includes the following four main works:

     a) Road and paving works, which include construction of 3 km of 2-lane dual carriageway internal roads connecting all the terminal buildings and parking areas; and construction of container and cargo stacking yard, parking areas, and a helipad.

     b) Other infrastructure works, which comprise construction of potable water network to serve the commercial berth buildings and ships, a fire fighting network, storm water and sewerage network, installation of electrical, telecommunications, and street and yard lighting cables, and construction of fencing and gates.

     c) Terminal building and Operational Zone.

     d) Crane beam and track works, which include installation of a crane beam supported on piles, and its tracks.

(ii) Construction supervision. An international consulting firm engaged for overseeing and supervising the construction of works, will assist SEZAD in timely completing the Project with the desired quality. The function of the consultant would be to assist the SEZAD Project Team in ensuring that the quality and quantities of executed works strictly comply the contractual specifications and are within budget and on time.

(iii) Project Management. Project Management will be undertaken by the SEZAD’s Project Implementation Unit (PIU) headed by the Project Manager, SEZAD’s staff, and its international and national consultants. Regular meetings will be scheduled to track project progress. International procurement specialist and financial management specialist will provide training to PIU and SEZAD on international tendering, and auditing and best financial management practices respectively. All variation orders of contractor’s and construction supervision consultants will be approved by SEZAD’s PIU management.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

The Project has been placed in Category B under the provisions of the Environmental and Social Policy (ESP) of the Bank. The potential risks and impacts, which will occur primarily during the construction period, are limited and localized, and concentrated within the existing port area, at commercial quays that are already built. A preliminary Environmental Impact Assessment (PEIA) has been prepared to meet the requirements of the national legislation of Oman and a Preliminary Environmental Permit has been issued by the Ministry of Environment and Climate Affairs (MECA). The PEIA addresses the provisions of the Bank’s ESS 1 – Environmental and Social Assessment and Management, which is applicable to the Project.

Please review the project summary for additional information.

PROJECT TEAM LEADER

Edwin Yuen

Senior Private Sector Operations Specialist

edwin.yuen@aiib.org

BORROWER

Humaid Al Tooqi

Director - Legal Affairs & Enforcement
Public Authority for Special Economic Zones and Free Zones

Humaid.AlTooqi@duqm.gov.om

IMPLEMENTING ENTITY

Humaid Al Tooqi

Director - Legal Affairs & Enforcement
Public Authority for Special Economic Zones and Free Zones

Humaid.AlTooqi@duqm.gov.om

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