Sultanate of Oman
| Loan No: | 507 | Interest Rate: | 3.0 % |
| Beneficiary: | Ministry of Transportation and Communication | Grace Period: | 4 years |
| Project Cost: | KD 36.4 million | Maturity: | 22 years |
| Amount of Loan: | KD 20.0 million | Repayment: | 37 semi-annual installments |
| Date of Board Approval: | 2009-06-08 | First Installment: | 4 years following the first disbursement |
| Date of Loan Agreement: | 2009-06-08 | Date of Loan Effectiveness: | 2009-06-29 |
Objectives:
The project is a part of a major plan to improve and upgrade the Muscat – Nazwa – Salalah road in order to meet the increasing transport demand between Muscat port in the north and Salalah port in the south passing through Thumrait. The project also aims at supporting tourism as well as contributing to the economic and social development in Oman.
Description:
The project, which is expected to be completed by the end of the first quarter of 2010, includes construction of a new road linking Salalah to Thumrait, and the widening and rehabilitation of the existing road which is about 73 km in length. The main components of the project can be summarized as follows:
- Civil works: This includes all necessary works related to the construction and paving of a new road with shoulders, and rehabilitation of the existing road between Thumrait and Salalah. The works include earthworks (cut and fill), reparation of the subgrade and subsequent pavement layers, construction of five under-passes drainage structures, installation of traffic signs, street lighting and other ancillary works for traffic safety.
- Consultancy Services: This includes providing the consultancy services required for the preparation of designs and tender documents, as well as assistance in the qualification of contractors, analysis of submitted bids and supervision of the project.
Financing:
The Arab Fund’s loan covers about 55.0% of the total cost of the project. The Government of Oman will cover the remaining cost and any additional cost that may arise.