Oman Daily Observer reported that a contract for the detailed engineering design of Phase 1 of Freezone Sohar is expected to be awarded before the end of 2009.
Officials overseeing the development of the ambitious freezone scheme said that they are heartened by the overwhelming response to their invitation for Expressions of Interest from consultants seeking to pre qualify for the contract.
The prequalification process was kicked off on August 1st 2009 with a significant number of international and local design and engineering consultants having responded by the August 17th 2009 deadline to register their interest in bidding for the prestigious contract.
An official said that "The response has been very good. We have already evaluated the Expressions of Interest and they are of good quality overall. A shortlist of the prequalified parties will be announced shortly, whereupon a Request for Quotations will be issued in September."
He added that a final contract award for the engineering design of Phase 1 of the project is likely to be formalized by the end of the year.
According to officials, the robust interest generated by the project augurs well for its early implementation and successful launch notwithstanding the economic downturn and financial crisis currently affecting many countries around the world. The strength of interest is also a reflection of the project's overall investment appeal.
Sohar Freezone LLC, a JV of Sohar Industrial Port Company and SKIL Infrastructure Limited of India is overseeing the development of the 4,500 hectare freezone which adjoins the hugely successful Port of Sohar. SIPC which is a 50-50 JV of the Government of Oman and the Port of Rotterdam currently operates and manages the industrial port at Sohar.
Mumbai based SKIL is India's leading infrastructure and development company well known as a pioneer in conceptualizing and developing special economic zones. Under a concession agreement awarded by the Government of Oman last year, Sohar Freezone LLC will serve as the freezone authority until the year 2043. Development of the massive freezone area which is twice the size of the Port of Sohar is envisaged in phase V.
In the Phase I, a 500 hectare segment of the freezone will be taken in hand for immediate development. This area will be earmarked for downstream industrial and petrochemical investments, warehousing and logistics services and so called soft investments such as educational, medical and other service related amenities.
A master plan drawn up for Phase 1 of the
SEZ project envisions investments organized into the following clusters: Trading & Logistics, Light Manufacturing, Petrochemicals, Aluminium activities, Iron & Steel, Cement grinding and Education & Services. Given Freezone Sohar's proximity to a number of base petrochemical and metals industries in and around Sohar Port, priority will be given to investments that utilize feedstock as raw material from these existing ventures.
Officials are confident that investor interest in the project will be robust, not least because of the attractive incentives offered by the freezone authority. The enticements include 100% foreign ownership, free repatriation of capital and profits, relaxed corporate tax holiday, competitive land lease tariffs and duty exemptions on imports and exports and a policy of no minimum capital requirements. Permits and approvals will be processed speedily through a One Stop Shop arrangement.
Source : Steelguru