10 October 2015
Oman Rail, the Sultanate's national railway company, has identified as many as 56 different categories of commercial opportunities that it wants Omani contractors, as well as small and medium enterprises (SMEs), to capitalise on during the construction and operational phases of the multibillion-dollar rail venture.
These opportunities are part of a robust In-Country Value (ICV) strategy designed to ensure that Oman's National Railway Project creates employment for Omanis and opens up attractive economic benefits for local firms, according to a senior executive of the state-owned rail company.
"We have been very ICV focused," Nathan Wiles (pictured), General Manager -- Projects, stressed. "We understand that it is not only the international market that will come in and build this railway -- and if that was only the case -- then we will have all failed. This is about a sustainable industry. Omanis need to be able to go on to operate and maintain this railway for decades to come. So we have a very detailed set of ICV objectives, benchmarking similar projects from around the world, and we have established a high level of ICV requirements," he stated in a recent presentation on the substantial ICV associated with this strategically important national venture.
Giving an overview of the contracting and commercial opportunities arising of this ambitious scheme, Wiles said the company has pinpointed around 56 primary categories that could be implemented in-country by Omani companies.
According to the official, a sizable 98 per cent of the opportunities associated with the project fell into 10 broad categories accounting for the core infrastructure build, represented by the earthworks, bridges, tunnels and other major civil works. Still, the remaining two per cent represent a significant commercial opportunities that go beyond the core infrastructure activities, he pointed out.
Emphasising Oman Rail's commitment to localisation, the General Manager noted: "We have developed a progamme for ICV during the tendering process so we can measure the extent of ICV we have achieved as part of this process, and we are able to define and implement the monitoring approach to make sure that what we say we're going to do and what our contractors say they are going to do they go on to actually doing it. This is our commitment and strategy."
Local procurement is a key objective of this strategy, he pointed out. "First of all, we want to procure as much as possible from Omani companies. We also want to provide Omanis with sustainable employment opportunities..., we want to upskill our workforce which can cross borders and go on to build railways elsewhere in the world. We want to increase and build new local knowhow, and we want to help build the Omani SME landscape as well."
Bidders for Oman Rail's EPC packages, according to the official, are required to commit to Omanisation are part of their ICV plans. "What tenderers plan for each work package is critical. Clearly we have a commitment to Omanisation, to make sure we employ Omanis in specific positions -- one, where they are already skilled; two, where they can be upskilled; and three, where we can make sure that we provide new opportunities in the railway industry, which at the moment, do not exist in-country."
In addition to specific training plans, tenderers are also required to commit to the development of Omani subcontractors, the General Manager said. This is key to ensuring that Omanis are suitably trained to operate and maintain the railway over the long term, he stated.
Furthermore, bidders are being encouraged to put forth plans to support 'alternative ICV opportunities', said Wiles.
These relate to opportunities that either do not presently exist in-country or exist but are under-developed. New activities, technologies and components of the railway industry that can be developed in-country can be explored as well, he explained.
To illustrate the potential for 'alternative ICV' development, the official cited the example of a mandate for the construction of a sleeper factory that, while currently unavailable in Oman, can still be implemented to support the railway project.
"Why do we want to import (sleepers) when we have the in-country capability to deal with concrete?" he noted in this regard.
Turning to SMEs and local entrepreneurs, Wiles urged them to explore partnership opportunities with international firms and thereby capitalise on opportunities that will become available during the construction and operational phases of the railway project. "We are encouraging all of the SMEs in the country to talk to international partners to see where they can benefit from this overall project," he stated.
Oman Rail, the Sultanate's national railway company, has identified as many as 56 different categories of commercial opportunities that it wants Omani contractors, as well as small and medium enterprises (SMEs), to capitalise on during the construction and operational phases of the multibillion-dollar rail venture.
These opportunities are part of a robust In-Country Value (ICV) strategy designed to ensure that Oman's National Railway Project creates employment for Omanis and opens up attractive economic benefits for local firms, according to a senior executive of the state-owned rail company.
"We have been very ICV focused," Nathan Wiles (pictured), General Manager -- Projects, stressed. "We understand that it is not only the international market that will come in and build this railway -- and if that was only the case -- then we will have all failed. This is about a sustainable industry. Omanis need to be able to go on to operate and maintain this railway for decades to come. So we have a very detailed set of ICV objectives, benchmarking similar projects from around the world, and we have established a high level of ICV requirements," he stated in a recent presentation on the substantial ICV associated with this strategically important national venture.
Giving an overview of the contracting and commercial opportunities arising of this ambitious scheme, Wiles said the company has pinpointed around 56 primary categories that could be implemented in-country by Omani companies.
According to the official, a sizable 98 per cent of the opportunities associated with the project fell into 10 broad categories accounting for the core infrastructure build, represented by the earthworks, bridges, tunnels and other major civil works. Still, the remaining two per cent represent a significant commercial opportunities that go beyond the core infrastructure activities, he pointed out.
Emphasising Oman Rail's commitment to localisation, the General Manager noted: "We have developed a progamme for ICV during the tendering process so we can measure the extent of ICV we have achieved as part of this process, and we are able to define and implement the monitoring approach to make sure that what we say we're going to do and what our contractors say they are going to do they go on to actually doing it. This is our commitment and strategy."
Local procurement is a key objective of this strategy, he pointed out. "First of all, we want to procure as much as possible from Omani companies. We also want to provide Omanis with sustainable employment opportunities..., we want to upskill our workforce which can cross borders and go on to build railways elsewhere in the world. We want to increase and build new local knowhow, and we want to help build the Omani SME landscape as well."
Bidders for Oman Rail's EPC packages, according to the official, are required to commit to Omanisation are part of their ICV plans. "What tenderers plan for each work package is critical. Clearly we have a commitment to Omanisation, to make sure we employ Omanis in specific positions -- one, where they are already skilled; two, where they can be upskilled; and three, where we can make sure that we provide new opportunities in the railway industry, which at the moment, do not exist in-country."
In addition to specific training plans, tenderers are also required to commit to the development of Omani subcontractors, the General Manager said. This is key to ensuring that Omanis are suitably trained to operate and maintain the railway over the long term, he stated.
Furthermore, bidders are being encouraged to put forth plans to support 'alternative ICV opportunities', said Wiles.
These relate to opportunities that either do not presently exist in-country or exist but are under-developed. New activities, technologies and components of the railway industry that can be developed in-country can be explored as well, he explained.
To illustrate the potential for 'alternative ICV' development, the official cited the example of a mandate for the construction of a sleeper factory that, while currently unavailable in Oman, can still be implemented to support the railway project.
"Why do we want to import (sleepers) when we have the in-country capability to deal with concrete?" he noted in this regard.
Turning to SMEs and local entrepreneurs, Wiles urged them to explore partnership opportunities with international firms and thereby capitalise on opportunities that will become available during the construction and operational phases of the railway project. "We are encouraging all of the SMEs in the country to talk to international partners to see where they can benefit from this overall project," he stated.
© Oman Daily Observer 2015
