Oman’s first Ppp-based truck road project to boost mineral exports
New link: Project estimated to cost between RO 200m – 250m
The Omani government’s maiden initiative to tap the private sector in the construction of the country’s first carriageway based on the Public-private-partnership (PPP) model formally got under way on Monday, November 28, 2022.
Spanning a distance of 67 kilometres, the proposed Salalah – Thamrait carriageway will be designed primarily for heavy trucks bearing mineral ores, among other goods, from mineralrich areas of the Wilayat of Thamrait in Dhofar Governorate. Dubbed the Salalah – Thamrait Truck Road (STTR), this new road venture serves as an efficient, all-weather alternative to the current 85-km carriageway that, as part of the arterial Adam – Salalah highway, currently serves as the only lifeline connecting the north of Oman with Dhofar Governorate.
The Ministry of Finance, which administers all Ppp-based projects in Oman, is overseeing the competitive process for the procurement of the Salalah –
Thamrait Truck Road project in coordination with the Ministry of Transport, Communications and Information Technology.
On Monday, it issued a Request for Expressions of Interest inviting suitably qualified developers to bid for its mandate to ‘Design, Finance, Construct, Operate and Maintain’ the STTR project on a PPP basis.
A key beneficiary of the new road link will be the governorate’s thriving mineral industry, which has long called for easier and cost-competitive transportation of ores from Thamrait to Salalah Port, presently the principal staging point for Omani mineral exports.
Gypsum and limestone ores mainly mined from Thamrait constitute the lion’s share of the 16 million tonnes of general cargo volumes (2021 figures) handled by Salalah Port annually.
Almost all of the minerals exported via the port originate at Thamrait, and must be transported by heavy truck along the sole dual carriageway that also serves the general motoring population.
However, as the dual carriageway twists and turns through the Dhofar Mountains, its sharp bends and steep gradients have made it prone to accidents and also contributed to frequent traffic snarls. Furthermore, an upsurge in mining, quarrying and farming activity in the Thamrait area in recent years has resulted in sharp increase in the number of heavy trucks and commercial vehicles headed to Salalah city and its transhipment hub.
The new alignment, while shorter than the existing carriageway, will nevertheless traverse undulating terrain that will necessitate the construction of bridges at several locations.
The overall cost of construction is estimated in the range of RO 200 million – 250 million, according to industry experts. In addition to the mineral sector, the new link will also open up parts of Thamrait — notably the Najd with its promising agriculture and farming potential — to investment and development.
Trade flows with neighbouring Yemen, via Al Mazunah Free Zone, are expected to grow as well. Importantly, to help the selected developer recoup its investment in the project term, users — trucks in particular — will be required to pay a toll — the first such levy of its kind in Oman.
Toll-based collection will be a key component of privately funded road ventures procured on a PPP basis going forward.