Oman will not cut back on infrastructure spending
Government will not reduce spending on infrastructure projects despite decline in oil prices.
The Omani government will not reduce infrastructure spending, despite plunging oil prices.
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Oman does not plan to cut down infrastructure projects even as the government seeks to limit spending in the wake of plunging oil prices, it was reported.
The sultanate will need an oil price of about $102 a barrel to break even in 2014, according to an estimate from the International Monetary Fund earlier this year.
“We have dealt with similar scenarios in the past, and we are considering a number of steps to be taken in case of lower prices,” said Nasser al-Jashmi, undersecretary at the ministry of finance, quoted in Reuters.
“So far, there are no changes on the budget. All the planned projects will continue as planned in the current five-year plan,” he added.
Although Jashmi said the government would take steps to curb expenditure, he did not elaborate on this plan.
The country, which accounted for 6 percent of construction and infrastructure projects across the GCC region as of April 2014, has set aside around $6.5 billion a year to develop infrastructure, according to MEED.
Last year, the government announced that the country would spend over $50 billion in infrastructure projects over the next 15 years, with $20 billion earmarked for the transport sector.
