Oman’s 2023 Budget gives major boost to PPP projects

https://www.omanobserver.om/article/1130650/business/economy/omans-2023-budget-gives-major-boost-to-ppp-projects

OMAN DAILY OBSERVER / 3 JANUARY 2023

Private-led investments: Development of Invest Easy, National Port Community System, Liwa fishery harbour initiatives to make headway this year

CONRAD PRABHU

Oman’s Ministry of Finance has unveiled a sizable portfolio of projects and initiatives for implementation under the Public Private Partnership (PPP) programme during 2023.

Proposals listed in the 2023 State Budget for development via the PPP route span the Education, Health, Transport & Logistics, Communications & IT, Fisheries, and Infrastructure sectors.

“The Ministry of Finance, in coordination with various government units, seeks to engage the private sector in the implementation of PPP projects in order to encourage the private sector to invest in infrastructure projects and public services,” the Ministry noted in its 2023 State Budget statement.

Notable is an initiative to procure the development of 42 schools for the Ministry of Education to help cater to growing demand for educational infrastructure in various governorates of the Sultanate of Oman. The successful developer will secure a concession to undertake the design, finance, construction and maintenance of the package of 42 schools under the PPP model.

In the healthcare services sector, the Ministry has outlined plans for the procurement of a Hemodialysis Services Project supported by the private sector. This project aims at establishing and developing a number of dialysis centres in order to benefit a larger number of patients, in addition to reducing the costs borne by the Ministry of Health.

Separately, the Ministry has sought a qualified company to operate and manage the Al Taafi Suhar Centre, which has been set up to provide advanced levels of treatment and rehabilitative care to recovering drug addicts.?In addition to financing and provisioning the facility, the successful bidder will also be required to expand the centre at the appropriate time.

Also set to make headway in 2023 is Oman’s first PPP-based road dedicated to heavy vehicles and trucks operating between Thamrait and Salalah City in Dhofar Governorate. The selected developer will secure a concession to ‘Design, Finance, Construct, Operate and Maintain’ the 67-km carriageway, while recouping its investment via the installation of a first-ever toll system along the route.

In cooperation with the Ministry of Transport, Communications and Information Technology, the government plans to tap the private sector in the development and operation of a National Ports Community System in Oman. Based on the ‘single window’ concept, the Port Community System (PCS) will optimize, manage and automate port and logistics processes via the establishment of a standardized platform that connects all transport and logistics chains.

The private sector will also play a key role in the development and operation of a fisheries seaport and food-centric industrial complex at Liwa in North Al Batinah.?To be procured in partnership with the Ministry of Agriculture, Fisheries and Water Resources, the PPP-based venture will seek to upgrade Liwa’s existing infrastructure to attract investments in a full-fledged fisheries and food processing hub.

Other PPP opportunities lined up this year include proposals for the construction of a new head office for the Ministry of Commerce, Industry and Investment Promotion; development and operation of its Invest Easy platform; and construction of new centres for the Oman Women’s Association in Muscat and Seeb.