Sultanate’s tender board being aggressive in its implementation of projects
Oman’s activity in project spending will continue to perform strongly with the Tender Board allotting more than $3.1bn till the beginning of the fourth quarter of 2012, experts said on Tuesday.
The country currently has road and bridge projects worth more than $7bn underway, a planned rail project of more than $5.19bn, as well as several ports and airports. These projects are all in line with the government’s efforts to improve its regional transportation infrastructure.
“With the relative aggressiveness shown by the Tender Board to implement the projects, the coming quarters will see stronger flow of tenders for more projects coming up in Oman,” said Kanaka Sundar, head of research of Gulf Baader Capital Markets, in a report by the Oman Daily Observer.
Aiding the increased spending is the Sultanate’s rising revenue, which jumped by 38% at the end of July this year, as compared to the same time period in 2011. This jump was fuelled by oil prices stabilising at above $100 a barrel over the last few months.
The Omani government is expected to spend an average of $5.19bn per year over the next five years on various infrastructure projects. Oman is expected to boost spending during its 2011-2015 development plan by 113% with the expectation that high oil prices will fund the increase. As a result, the country aims to increase its crude output.