Oman wants GCC-only subbies for rail project

Oman is set to limit the onvolvement of subcontractors looking to get involved with its $15bn rail
project to companies within the GCC.

Speaking at the GCC Rail and Metro Conference taking place in Muscat today, Oman's
Minister of Transport and Communications, HE Dr Ahmed bin Mohammed bin Salem Al
Futaisi, said that although many projects completed in the past had just been treated as
purely infrastructure schemes, his government was keen to make sure the rail project
includes "proper development of human resources".
"We want this project to be different," he said. "If you want to go into detail, [look at] what
we've done in Oman with tenders."
He said that the consultancy appointed to design Oman's rail network, Italferr, had to make
a commitment to take on and train 50 Omani graduates to ensure a proper knowledge
transfer to locals.
"That's a change in our procurement strategy. We have never done that before," he said,
adding that it had also prepared a vendor list for all of the subcontractors who wished to be
involved.
Only GCC-based subcontractors and suppliers have been allowed onto the list and they
have had to go through quality checks and vetting.
"That's a new development in our procurement strategy. This shows a will from the
government here that there will be huge opportunities. We are heavily reliant on the
private sector to be involved."
Al Futaisi said that delays to the project to date were understandable, given the complex
nature of setting up a new railway network, but added that "big advancements" have been
achieved, including the finalization of a cross-border customs union, which is now in its
final stages having been submitted to the World Trade Organisation for approval.
He said that he was confident it would meet the target date set by the GCC's heads of state
of the end of 2018.
"I believe it will move very fast."
He added that the current fluctuation in oil prices is unlikely to cause too much concern for
GCC governments.
"It is not wise to link such fluctuation with a long term dream," he said