The Government of the Sultanate of Oman is engaged in advanced negotiations with Singaporean property developer Ascendas to build the Salalah Port Free Zone. The parties are still divided the on the project’s ownership structure, reported Reuters
The of $90 million project was shelved last year after American construction firm Hillwood Development pulled out. Under the terms of the aborted deal, the Salalah Port Services Company (SPS), a Public Omani Company, which is a joint venture partnership between the government of Oman, Omani nationals and Maersk-Sealand, was named project manager while the Dallas-based Hillwood was appointed as the project’s specialist developer.
The agreement provided for the SPS/Hillwood team prepare a business and development plan and advise the Omani government on the initial phase of the development, including the incentives to be made available to the customers of the free zone. Development of the initial portion of the projects' first phase was scheduled to commence in mid-2001.
Phase I of the Salalah Port Free Zone is designed to provide 500,000 square meters of new distribution and light manufacturing facilities, as well as the establishment of a residential village, aiming to raise the port’s cargo throughput, stimulate economic growth and create job opportunities.
The Port of Salalah is a transshipment hub located in the Southern Dhofar Region of the Sultanate of Oman on the Indian Ocean. It provides weekly service to more than 30 ports in the Indian Ocean Rim Countries. — (menareport.com)
© 2003 Mena Report (www.menareport.com )