DUBAI Feb 6 Oman has signed a 13.6 million rial
($35.3 million) deal with Italferr, the Italian state railways
engineering firm, for consultancy services on the initial design
of its multi-billion dollar railway project, its state news
agency ONA said.
A pre-qualification tender for railway construction will
hopefully be launched soon, Minister of Transport and
Communications Ahmed bin Mohammed al-Futaisi said in a statement
carried by ONA.
"The first contractor will be awarded the actual work early
in 2015," he said, adding that field preparations had started
including geographic and geological surveys.
The state-funded, 2,244 kilometre (1,395 mile) rail network
- the country's first - would link the desert town of Buraimi,
bordering the United Arab Emirates, to six major settlements in
Oman including the industrial city of Sohar and the port of
Salalah, seen as the region's future gateway to Africa.
Officials have estimated the eventual cost of the project at
around $15 billion. It would ultimately connect to a planned
rail network across the six-nation Gulf Cooperation Council
(GCC), and eventually to neighbouring Yemen.
Oman, which exports modest amounts of oil and will face
challenges in financing its state budget and generating
employment for its citizens in coming years, has said it expects
its railway network to be fully operational by 2018.
The railway could help to diversify Oman's economy beyond
oil and gas by facilitating trade and industrial projects, while
increasing the geopolitical security of Gulf Arab states by
giving them a major trade route bypassing the Strait of Hormuz.
($1 = 0.3851 Omani rials)
(Reporting by Martin Dokoupil; Editing by Andrew Torchia)