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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

PPP model: Mwasalat offers prime land for private investment

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MUSCAT, MAR 7 - Oman Global Logistics Group SAOC (Asyad), the government’s transportation and logistics flagship, has invited Expressions of Interest (EoIs) from developers in a prime piece of real estate owned by its public transportation subsidiary, Mwasalat, in Al Athaiba in Muscat Governorate. The 54,000 sq metre plot is proposed to be offered on a long-term lease to a selected investor for development into a mixed-used commercial, retail, hospitality and residential project. For its part, the developer will be required to fund the construction of Asyad’s offices within the development, as well as provide accommodation for Mwasalat’s employees nearby.


“Asyad (as Project Promoter) on behalf of Mwasalat (Project Employer) seeks proposals to select a developer to design, build, finance, operate a residential, commercial or mixed-use project on Mwasalat’s project site which is 54,104 sqm prime land in Al Athaiba, Muscat and transfer the project back to Mwasalat before 15-05-2068,” said the state-owned holding company in a tender document issued last week.


According to Asyad Group, the selected developer will have the option to “develop a residential, commercial or a mixed-use project on the land which may include retail shops, offices, mall, hypermarket, apartments, hotel etc or any other facility” on the land offered by Mwasalat. Additionally, the developer “may lease-out, sub-let or operate the facilities to recover its cost and earn profit over the period of the agreement”. The developer may also assign individual facilities to different operators to operate and/or maintain.


Interested developers are required to submit options to house Asyad’s offices within the development on long-term lease. Likewise, proposals for constructing residential lodgings for Mwasalat employers in close proximity of the development should be included as well. Ownership of the Asyad offices and residential blocks will transfer to the respective clients upon the expiry of the tenure of the lease.


Interested investors have until March 20, 2020 to submit their Expressions of Interest along with their corporate credentials.


Of late, Asyad has adopted the Public-Private-Partnership (PPP) model to secure private investment in the implementation of key office and other support infrastructure necessary to sustain its operations, as well as those of some of its subsidiaries, without having to turn to the government for its funding requirements.


Last November, the holding company invited private developers to invest and develop new complexes of its wholly-owned subsidiary, Oman Post, as part of mixed-use developments at key locations in Muscat Governorate. As many as five sites have so far been identified by Asyad to be leased to private investors for development under the Design, Build, Finance, Operate and Transfer (DBFOT) model for a period of 25 years.


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