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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Ministry seeks RO 70 million from company for delays at new airport

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Noah al Maamari -


Muscat, Feb 26 -


A compensation of RO 70 million has been demanded from the executing company for delay at the new Muscat International Airport, Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, has said.


Speaking at a session of the Majlis Ash’shura on Monday, he said the total value of all contracts for the airport is RO 1.99 billion, of which RO 152 million (7.8 per cent) was spent due to changes in contracts.


The minister said the government is trying to promote Suhar as an international airport and seeking private investment from several countries, including Malaysia, India, China and Thailand.


“The airport will be offered for private investment in the first half of this year,” he said.


On Oman Air, Dr Al Futaisi said only 24 out of the 49 destinations covered by the airline are making profits and 11 are making losses. The remaining 14 have seen a growth in revenues. He said the airline will continue to be subsidised for some more years. “The recent restructuring is part of our efforts to ensure the airline makes profits.”


Dr Al Futaisi said the board of directors is looking at handing over the management of the airline to Omani nationals, including the post of chief executive.


He also spoke about the ministry’s plan to qualify national cadres to assume leading positions


in Oman Air.According to him, there is a plan to increase Sohar Port’s capacity by five million containers as well as developing marketing and human resources and facilitating trade.


The ministry will launch commercial operations at Al Suwaiq Port by using the existing berth, which can be expanded if the ministry decides to increase activities at the port.


On the progress of Mina Sultan Qaboos Waterfront, the minister


said the contract given to UAE-based Damac will be withdrawn if 60 per cent of the project is not completed within three years.


He said the agreements are in favour of Omran (Oman Tourism Development Company), which can take over the project from Damac if the first phase is not completed within five years.


The South Al Batinah Logistics Area (Khazaen) has been receiving good response from investors.


An Omani-Saudi coalition for investment in the area will be announced at the Oman Real Estate Exhibition on March 12.


Answering inquiries on telecommunication networks, he said the ministry has presented a proposal to the Ministry of Finance to cover remote areas. The cost will be shared between the ministry and the residents.


The ministry has floated a consultancy tender for the rehabilitation of Al Hazm-Al Rustaq Road and is studying implementation of tunnels, bridges and viaducts on the main roads, including Al Batinah Road.


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