PHOTO
23 May 2016
Msucat - A major usufruct agreement to establish $10 billion Oman-China Industrial City was signed by the Sultanate and China on Monday. The agreement for the city to come up in Duqm Special Economic Zone (SEZAD), was signed by Yahya bin Said al Jabri, Chairman of Special Economic Zone Authority in Duqm (SEZAD), and Ali Shah, Chairman of Oman Wanfang, on behalf of the Chinese side.
Present at the signing ceremony were Wang Yong, State Councillor of the People's Republic of China, Sayyid Badr bin Hamad al Busaidy, Secretary-General of the Foreign Ministry, Liu Kewei, Vice-Chairperson of China's Ningxia Province and officials from the Sultanate and China.
The total investment pumped for the construction of the industrial city until 2022 will be about $10 billion.
The industrial city, spread over an area of 11.72 sq kms in Duqm will see the establishment of a vast city with diverse industrial activities such as light, medium and heavy industrial areas, light and mixed use land and hotels in the next six years. There will also be a world class hospital and school catering to the local populace.
"What we have planned is a win-win agreement with China to the green field of Duqm where we agreed to provide land for the Chinese investors to construct industrial parks including heavy industries park with petrochemical activities, light and medium cities," Al Jabri told the Observer. "We have agreed with China that they will construct the industrial infrastructure including all basic amenities apart from what the city currently has and we will share the profit in the long run," he added.
"We are expecting to build the city in three phases and the first phase will be ready in next five years. The second and third phases will be built in short time, and another four years for the completion of these phases is expected," Ali Shah said.
He further said that as many as 12,000 employees belonging to different companies will be working in the city and out of this more than 10 per cent will be local employees. Oman's location, policy are highly investor-friendly, and the relations are also historic that made us to choose Oman as the hub of our activities to cater to the whole region.
The first area of about 870 hectares shall be indivisible and allocated to heavy industries and areas of medium, light, and mixed use. Wanfang would allocate this land under sub-usufruct conventions to other Chinese investors and companies.
Wanfang will be responsible for operation and maintenance of infrastructure on site unless applicable systems in the Sultanate require otherwise.
The second category will be on an area of about indivisible 10 hectares allocated to the implementation of a tourism project.
The third category will be on an area of 292 hectares allocated for the establishment of an oil refinery and petrochemical industries complex. The production capacity of the refinery will be about 230,000 barrels per day.
The agreement signed between SEZAD and Oman Wanfang states that the commitment of the company in this context is not limited to the development of the land, but extends to the construction of oil refinery subject to receipt of necessary permits and approvals by the competent authorities in the Sultanate.
Oman Wanfang shall also be responsible for reaching agreements with the Rural Areas Electricity Company, Marafiq Company, and Duqm Port Company on its needs of infrastructure facilities built away from the site and utility connections. These shall include, but not limited to electricity, cooling water, access to the utility corridors and port facilities in respect of the supply of gas, crude oil, refined products and the refinery.
The two sides agreed on the minimum development requirements undertaken by Oman Wanfang and implementation phases, which will include development of infrastructure facilities and the establishment of a number of end-user projects. Oman Wanfang shall also assume the role of the owner or director of the site toward the end-user and tenants of divisible plots.
The agreement stipulates that Oman Wanfang shall develop at least (30 per cent) of the divisible land within 5 years. It also states the need to embark on the construction of the projects on indivisible land (tourism compound) within two years from signing the agreement and that the completion date of the project would be within 4 years from signing of the agreement or return land to SEZAD. As for the oil refinery, if the company does not obtain the necessary permits and approvals, it shall nevertheless develop the site allocated for the construction of the petrochemical complex.
Oman Wanfang asked for permission to build housing facilities to accommodate nearly 25,000 people supposed to live and work in SEZAD, whereas the total required number of employees would be about 11,400 until 2022 excluding construction workforce.
The number of projects implemented in the industrial park will be around 35; 12 in the field of heavy industries including the production of commercial concrete, building materials and related industries, production of glazed glass, methanol and other chemicals. Add to this processing of steel smelting, aluminum production, production of vehicle tires, building materials for protection against water and corrosion, extracting magnesium from seawater, chemical-aromatic projects and others.
In the light industrial zone there will be 12 projects: production of 1 GW of solar power units, 1 GW of batteries, equipment of 10,000 private SUVs, production of oil and gas tools, pipelines, and drilling, production of half a million tonnes of colorful panels, assembling bicycles, garment production, production of games, as well as a variety of other projects.
Msucat - A major usufruct agreement to establish $10 billion Oman-China Industrial City was signed by the Sultanate and China on Monday. The agreement for the city to come up in Duqm Special Economic Zone (SEZAD), was signed by Yahya bin Said al Jabri, Chairman of Special Economic Zone Authority in Duqm (SEZAD), and Ali Shah, Chairman of Oman Wanfang, on behalf of the Chinese side.
Present at the signing ceremony were Wang Yong, State Councillor of the People's Republic of China, Sayyid Badr bin Hamad al Busaidy, Secretary-General of the Foreign Ministry, Liu Kewei, Vice-Chairperson of China's Ningxia Province and officials from the Sultanate and China.
The total investment pumped for the construction of the industrial city until 2022 will be about $10 billion.
The industrial city, spread over an area of 11.72 sq kms in Duqm will see the establishment of a vast city with diverse industrial activities such as light, medium and heavy industrial areas, light and mixed use land and hotels in the next six years. There will also be a world class hospital and school catering to the local populace.
"What we have planned is a win-win agreement with China to the green field of Duqm where we agreed to provide land for the Chinese investors to construct industrial parks including heavy industries park with petrochemical activities, light and medium cities," Al Jabri told the Observer. "We have agreed with China that they will construct the industrial infrastructure including all basic amenities apart from what the city currently has and we will share the profit in the long run," he added.
"We are expecting to build the city in three phases and the first phase will be ready in next five years. The second and third phases will be built in short time, and another four years for the completion of these phases is expected," Ali Shah said.
He further said that as many as 12,000 employees belonging to different companies will be working in the city and out of this more than 10 per cent will be local employees. Oman's location, policy are highly investor-friendly, and the relations are also historic that made us to choose Oman as the hub of our activities to cater to the whole region.
The first area of about 870 hectares shall be indivisible and allocated to heavy industries and areas of medium, light, and mixed use. Wanfang would allocate this land under sub-usufruct conventions to other Chinese investors and companies.
Wanfang will be responsible for operation and maintenance of infrastructure on site unless applicable systems in the Sultanate require otherwise.
The second category will be on an area of about indivisible 10 hectares allocated to the implementation of a tourism project.
The third category will be on an area of 292 hectares allocated for the establishment of an oil refinery and petrochemical industries complex. The production capacity of the refinery will be about 230,000 barrels per day.
The agreement signed between SEZAD and Oman Wanfang states that the commitment of the company in this context is not limited to the development of the land, but extends to the construction of oil refinery subject to receipt of necessary permits and approvals by the competent authorities in the Sultanate.
Oman Wanfang shall also be responsible for reaching agreements with the Rural Areas Electricity Company, Marafiq Company, and Duqm Port Company on its needs of infrastructure facilities built away from the site and utility connections. These shall include, but not limited to electricity, cooling water, access to the utility corridors and port facilities in respect of the supply of gas, crude oil, refined products and the refinery.
The two sides agreed on the minimum development requirements undertaken by Oman Wanfang and implementation phases, which will include development of infrastructure facilities and the establishment of a number of end-user projects. Oman Wanfang shall also assume the role of the owner or director of the site toward the end-user and tenants of divisible plots.
The agreement stipulates that Oman Wanfang shall develop at least (30 per cent) of the divisible land within 5 years. It also states the need to embark on the construction of the projects on indivisible land (tourism compound) within two years from signing the agreement and that the completion date of the project would be within 4 years from signing of the agreement or return land to SEZAD. As for the oil refinery, if the company does not obtain the necessary permits and approvals, it shall nevertheless develop the site allocated for the construction of the petrochemical complex.
Oman Wanfang asked for permission to build housing facilities to accommodate nearly 25,000 people supposed to live and work in SEZAD, whereas the total required number of employees would be about 11,400 until 2022 excluding construction workforce.
The number of projects implemented in the industrial park will be around 35; 12 in the field of heavy industries including the production of commercial concrete, building materials and related industries, production of glazed glass, methanol and other chemicals. Add to this processing of steel smelting, aluminum production, production of vehicle tires, building materials for protection against water and corrosion, extracting magnesium from seawater, chemical-aromatic projects and others.
In the light industrial zone there will be 12 projects: production of 1 GW of solar power units, 1 GW of batteries, equipment of 10,000 private SUVs, production of oil and gas tools, pipelines, and drilling, production of half a million tonnes of colorful panels, assembling bicycles, garment production, production of games, as well as a variety of other projects.
© Oman Daily Observer 2016
