Sultanate of Oman

Al Duqm Port
Loan No: 501 Interest Rate: 4.5 %
Beneficiary: Ministry of Transport & Communication Grace Period: 4 years
Project Cost: KD 297.3 million Maturity: 22 years
Amount of Loan: KD 35.0 million Repayment: 37 semi-annual installments
Date of Board Approval: 2007-02-11 First Installment: 4 years following the first disbursement
Date of Loan Agreement: 2007-02-11 Date of Loan Effectiveness: 2007-03-20


Objectives:

The project aims at contributing to the economic and social development of the Wusta region of the Sultanate of Oman and securing job opportunities for its population. This is achieved through the construction of a new port in Al Duqm district between Sultan Qaboos and Salalah ports. The project also aims at improving the economy through the construction of a dry dock and development of industries associated with the port activities.

Description:

The project, which is expected to be completed by the third quarter of 2010, includes all necessary works to construct a new port and dry dock, and provide the required equipment to operate the port. The main components of the project are as follow:

  1. Dredging: This component consists of dredging the port basin and the entrance channel to a depth of 16 m and 17 m, respectively. The dredging materials will be used to reclaim sea area to provide land space necessary for container warehousing, related activities and future port development.
  2. Breakwaters: This component includes the construction of a large breakwater 2700 m long to protect ships in the port, and a smaller secondary breakwater.
  3. Pavement Works: This component consists of building a 700 m long commercial quay to accommodate three commercial berths and government berths for the use of the marine and the coast guard forces. It also includes providing the commercial quay with the crane rails, the paving works and all mechanical and electrical works necessary for the port operations.
  4. Infrastructure Works: This component includes all works needed to provide the port requirements of buildings, workshops, warehouses, various utility networks, access roads connecting the port with the town centre, in addition to fuel storage.
  5. Dry Dock: This component consists of all civil works necessary for building the dry dock including the provision of floating docks, a gas station, coast protection, a weighbridge, and drainage and sewage treatment systems, in addition to buildings, and water and electricity services required for the operation of the yard.
  6. Equipment: This component includes the acquisition of all land and marine equipment necessary for the operation of the port and the dry dock.
  7. Consultancy Services: This component comprises the consultancy services required to prepare the project studies, the design and the tender documents. It also includes assisting in the supervision of the execution of the project.

Financing:

The Arab Fund’s loan covers about 11.8% of the total cost of the project. The Government of Oman and the local and international private sector will cover the remaining part of the project cost, and any additional cost that might arise during the implementation period.