Muscat, April 13 - A number of Omani property developers and investors are understood to have signalled their interest in bidding for contracts to develop three prime pieces of government real estate located in key areas of Muscat Governorate.
Last December, the Ministry of Commerce and Industry invited interested developers to prequalify for a competitive tender linked to the award of the three properties for investment and development on a Build-Own-Operate-Transfer (BOOT) basis.
The BOOT framework, according to experts, is the route most preferred by the Omani government for the implementation of public projects based on the Public-Private-Partnership (PPP) model amid the current fiscal environment.
“The Ministry of Commerce and Industry (Sultanate of Oman) has decided to enter into a long-term investment contract with investors for the investment and design, development and construction of governmental land belonging to the Ministry at (Al Khuwair, Ghala and Airport Heights),” said the ministry in an outline on the keenly anticipated tender.
“The (selected) investors will develop all or one of the three lands belonging to the Ministry of Commerce and Industry; The investor shall design, construct and operate the development through (its) own financing (based) on the conditions assigned against each land fulfilling the requirements of the ministry,” it stated.
The biggest and most promising of the three properties on offer is in Airport Heights where the erstwhile Oman International Exhibition Centre — once the epicentre of Muscat’s events and conventions industry —now stands.
The 127,000 sq metre plot is proposed to be transformed into a multi-use development incorporating, among other features, a business hotel, serviced hotel apartments, shopping mall and hypermarket, office blocks, conference centre and parking facilities.
Importantly, it will also house the future headquarters of the Ministry of Commerce and Industry, and related annexes. The ministry is offering 76.42 per cent of the area to the private investor against a commitment that the balance 23.58 per cent is developed based on the ministry’s requirements.
In Al Khuwair, the ministry is offering a roughly 14,500 sq metre plot for development into a commercial and residential scheme featuring duplex housing units, retail outlets, hypermarket, wedding hall and health club. The land is available for 100 per cent investment (although this would also have to cover investment in an apartment block for ministry employees to be finalised at a later date.)
A similar sized plot, belonging to the ministry, is also on offer in Ghala for development into a multi-use commercial and residential complex with showrooms, offices and apartments. The site will also host the new premises of the Directorate General of Standards and Metrology, which is part of the ministry. For its part, the ministry is offering 79.19 per cent of the property for private investment provided the balance 20.18 per cent is developed per the requirements of the government.
The properties will revert to the ministry upon the expiry of the long-term contracts covering their lease to the private sector, the ministry added.
Oman Observer is now on the WhatsApp channel. Click here
