According to the latest statistics released by the Oman News Agency, Oman Tender board awarded contracts worth RO 724.1 million in 2019. A clear sign that the Sultanate is working to accelerate the pace of development and inject additional funds into the economy, this figure is almost six times higher than what the Board approved during the entirety of 2018 (RO 129 million).

According to the State General Budget for 2019, the Government has allocated RO 2.6 billion for investment expenses; RO 1 billion for development expenses; RO 800 million for oil production; and RO 500 million for gas production.

According to the report, the estimated total public expenditure in the current budget is RO 12.9 billion, an increase of RO 400 million over the estimated expenditure in last year’s budget.

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Rise in the number of projects awarded

From January to August 7, 2019 the Tender Board held eight meetings. During that time, 86 tenders were awarded, which is twice the number for the whole of 2018 (46 tenders were awarded by the Tender Board last year).

The projects approved by the Tender Board included various economic, social, health, education, and other sectors. This includes:

• Tenders to provide educational services for technical colleges of the Ministry of Manpower for a period of three years worth about RO 114.4 million.
• The addition of the third and fourth lanes for the duplication of the Rusayl-Nizwa road from the Muscat highway intersection to the eastern highway intersection (part I) worth RO 86.2 million.
• Intersections and bridges within the Al Batinah highway (seventh package) project worth RO 3.81 million.

Infrastructure projects at the fore

The Tender Board also approved the construction of two tunnels and the implementation of additional works for the third lane of the Eastern Highway (Phase I – Part I) for RO 71.5 million and additional works for the upgrade of the Falaj Al Qabail Roundabout in Sohar by RO 3 million.

Duplication of the Aqaba Al Rustaq road in Al Batinah South Governorate was also awarded at a value of more than RO 2 million.

Industry Insights: Oman’s Infrastructure Development 2019

The Tender Board also awarded three projects for the protection dams: the construction of the dam in Al Jifnain area for RO 45.6 million; construction of a flood protection dam in Wadi Adai area for RO 36 million; and a dam to reduce the risk of flooding in the wilayat of Amerat for RO 34.6 million.

Healthcare projects

In the healthcare sector, the tenders included the supply of medicines, vaccines and serums to the Ministry of Health for the amount of RO 29.1 million.

Three tenders were also awarded to provide technicians for the operation and maintenance of health equipment belonging to the Ministry of Health in the provinces of Dhofar and South A’Sharqiyah for a total cost of about RO 11.8 million. 

Aviation tenders

In the aviation sector, the contract for the maintenance of air traffic management systems amounted to RO 3.8 million and the provision of consultancy services to oversee the development of Muscat International Airport and Salalah Airport was awarded at RO 3.6 million.

Real Estate & Property

A construction of a mixed-use development for retired civil servants that includes offices, hotels, residential and commercial units worth RO 54.6 million was also awarded.

Construction of mosques and schools for the Liwa Housing Project amounting to RO 24.5 million was also awarded.

It is expected that the new projects will contribute to stimulating the economy and provide more work for private sector companies, in turn, increasing employment opportunities available to citizens.