Renaissance Village Duqm’s massive facility to be fully operational in April
MUSCAT: Renaissance Village Duqm, a massive 16,000 bed facility to accommodate workers of contracting firms in Duqm free zone, will be fully operational in April, 2017. The first phase of the facility was opened on February 1, 2017, according to the company’s annual report posted on the MSM website.
“Of course, during 2017 we expect a slower and gradual occupancy build-up. Whereas in 2018 we anticipate high occupancy as major Duqm projects get underway,” Renaissance said in its annual report.
Permanent accommodation
Like the permanent accommodation for contractors (PAC) projects in Oman’s oilfields, Renaissance Village Duqm (which is 51 per cent owned by Renaissance Services) is a world class facility that allows special economic zone authority at Duqm to show the world how to look after workforces at high standards, but affordable competitive rates through economies of scale. Renaissance Village facilities already generate sustainable annual revenues of $75 million, which will increase substantially in 2018 when the occupancy rate rises.
The facility is also an ideal solution for short-term business visitors or work teams requiring accommodation for single night or short-term project durations.
More cost-effective
The accommodation at the Duqm facility is more cost-effective than building short-term temporary porta cabin accommodation for the duration of a project. This is achieved by longevity, permanence and economy of scale at Renaissance Village.
“These deliver higher standards at lower costs through economies of scale. But an independent survey conducted by Shell some years ago also proved that these permanent facilities deliver additional tangible and intangible value, including less consumption of water and electricity through quality of permanent infrastructure; better safety performance and lower downtime of absence through sickness.”
Potential expansion
The company is also looking at potential expansion of Renaissance Village Duqm in the years ahead, as well as a complimentary beach club facility. Renaissance also said that the company’s investment in warehousing, cold storage and logistics capability in its Central Stores in Mabela is already paying dividends in driving down our costs, increasing buying-power and enhancing logistics and supplies offering. The investment in warehousing and cold storage in Duqm is also intended to create scale and value in this capability in the future.