Carillion Alawi, a 50:50 Joint Venture with the Zawawi family, has signed a letter of award with the Oman Ministry of Health as the preferred bidder in respect of the design and build of the New Sultan Qaboos Hospital in Salalah. The contract has an estimated value of c£240 million to the Joint Venture.
The contract will consist of a two stage design and build process. The initial design and mobilisation phase, which will be directly funded by the customer, will commence immediately. The second phase would commence in 2018 once the design has been completed, the contract executed and funding finalised.
A further letter of award is due to be signed shortly by Carillion Alawi, also with the Oman Ministry of Health, in respect of a hospital in Khasab. The contract is on similar terms to those for the Salalah award and, if it were to go ahead, would have an estimated value of c£120m to the Joint Venture.
Both contracts are procured via lower risk procurement routes, for example through seeking support from UK Export Finance to secure project finance for customers. The Group continues to look at ways in which it can de-risk its operations in the Middle East, working with its partners in the region to secure the future of this business.