Feasibility of toll roads in Oman under study

MUSCAT, MAY 4 - Oman’s Ministry of Transport and Communications is studying the feasibility of introducing toll collection systems on certain carriageways aimed at attracting private investment in the development of a smart road system in the Sultanate. The move is broadly in line with the Omani government’s strategic goal to strengthen road communications thereby enhancing the Sultanate’s global rankings as a logistics-friendly destination.  Enabling toll collection is seen as key to attracting private investment in the road construction sector under the Public-Private-Partnership (PPP) model — an approach that the Implementation Support & Follow-up Unit (ISFU) is looking to implement under Tanfeedh (The National Programme for Enhancing Economic Diversification).

Outlining the rationale behind the initiative, ISFU said: “A smart road system in Oman will enhance the use of roads, whilst being safer and more comfortable to use for drivers. A toll-system is one part of the smart road system which is an electronic toll collection system used for free-flow multi-lane road. An elemental stage in implementing the project is the establishment of a road investment framework,” the Unit, part of the Diwan of Royal Court, explained in a newly published report. As a first step in this journey, the Ministry of Transport and Communications commissioned a consultant to study the feasibility of establishing a toll-road system on the Thamrait-Salalah carriageway. The study also covered toll regulation and investment policies. A draft of the study has since been submitted to the Ministry for the consideration of the Council of Ministers.

“Due for completion in early 2019, MoTC is working on a feasibility study for establishing road tolls,” ISFU noted in its report. “ISFU has been instrumental in progressing this initiative by supporting Asyad (the end-to-end integrated logistics flagship of the Sultanate) in discussing different business models,” it further stated. Besides Asyad Group, other stakeholders participating in the initiative to implement toll-road systems in the Sultanate include the Council of Ministers, and Ministry of Transport and Communications, among other relevant entities, according to ISFU.

“The focus in 2019 is to sign the toll-road concession agreement for the Thamrait to Salalah road,” it added. Maiden efforts to introduce toll systems in the Sultanate go back more than a decade ago when the ministry had toll gates installed on the Qurayat-Sur coastal road upon its completion in 2008. The move was eventually scrapped by the government. Toll systems were also envisaged along the newly constructed Batinah Expressway but have yet to be implemented. However, with the government embracing PPP and Build-Operate-Transfer (BOT) models for the implementation of large infrastructure developments amid the ongoing fiscal challenges, toll collection systems are expected to be an inevitable part of Oman’s future economic reality, say experts.