Published: Jul 06, 2014
Source: MSM

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Renaissance Awards Construction Contracts of RO 57 M/ US$150M

Renaissance Services has awarded construction contracts totaling over RO 57M / US$ 150M to four locally-based contractors to develop the first phase of their Permanent Accommodation for Contractors (PAC) in an appointed area within the SEZAD development of Duqm.

Renaissance appointed PWA in association with local partner Centre Point Engineering Consultancy in 2013 to carry out the design phase of the project.

Fourteen Grade-1 listed companies took part in the initial tender, with seven selected to progress to the technical and commercial interview stage, to ensure all technical aspects were reviewed with appropriate commercial considerations.

Initial contracts were awarded to Deebaj for the bulk excavation and earthworks and International Piling Experts in joint venture with Geosol for piling to buildings within soil sensitive areas. Approximately 1600 piles are to be installed with over 1100 completed to date.

Now the company has awarded two main construction packages for the building works on a 50/50 cost split due to the sheer volume of work within the construction period of 24 months. Al Hajiry Trading LLC has been awarded Package 3A with Services & Trade Company LLC securing Package 3B. However, within these packages there is over RO 12M of additional work to be tendered and awarded by the client’s team.

In order to conclude the construction phase of the project, two further packages are to be tendered and awarded in 2014; the STP facility and 11KV hook-up works.

Renaissance Services CEO, Stephen Thomas, said “We have run a professional, fair and transparent competitive tender process for all the packages awarded so far. We congratulate the successful bidders, and we appreciate the efforts of all who took part. When Renaissance puts out a tender, the contracting community knows they are competing on a level playing field for a worthwhile opportunity. The lowest technically competent and compliant bid will always win.”

The CEO also commented on the level of investment the company continues to make in Oman: “Today, Renaissance has assets over US$1.9 billion on its balance sheet. The Duqm Project shall be our largest single investment to date. With this and other investments planned, by the time the project is completed in 2016 we shall own over US$2.4 billion of assets. While we also continue to grow abroad, we have the full backing of the Renaissance Board to invest in developing major assets in Oman.”

When complete, the Duqm PAC facility will provide accommodation of over 16,000 beds. “With projects like these,” Thomas said, “Oman is leading the way in the region for state-of-the-art quality facilities for living and lifestyle for blue collar workers. And we are very cost-effective, delivering higher standards at lower costs through economies of scale.” He believes SEZAD is leading the way in Public/Private Sector collaboration. “SEZAD has created a platform of opportunity for a private sector company like ours to make this large-scale investment in Duqm.”

Renaissance plans to offer the opportunity for co-investment to local community investors from the Duqm area and Al Wusta Region, as well as Omani Pension Funds and Sovereign Wealth funds. “We want this to be a win-win solution for all stakeholders,” he said. “We are confident this shall be a terrific investment for all our shareholders; a safe and enjoyable living environment for our guests from the Duqm workforces; it will provide great employment opportunities for Omanis; and will be a boon to the Duqm economic zone and the local community.”

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