The Asian Infrastructure Investment Bank(the Bank)’s Board of Directors has approved two loans totaling US$301 million to finance two transport sector projects in the Sultanate of Oman, the Bank’s first in the Arabian Peninsula.
The Bank’s support comprises US$265 million towards Oman’s maritime infrastructure at Duqm Port and US$36 million to prepare the country’s first railway system. Upon successful completion, the projects are expected to enhance economic prospects in Oman and provide more efficient and effective maritime trade links to other Bank members, both in the Gulf and further afield. Duqm Port is strategically located with the potential to become a regional logistics hub with an economic footprint far beyond Oman’s borders. The Bank recognizes this opportunity and has supported its development. These projects are also among the first projects the Bank is financing individually.
President Jin Liqun said,
“I am pleased the Bank will be able to help the Government of Oman diversify its economy through the approval of these two projects – the Bank’s first in the Arabian Peninsula. The Bank’s capacity to prepare such important projects is developing rapidly. We have a strong pipeline of investments for next year and we will continue working hard to help develop the sustainable infrastructure that Asia needs.”
These two projects bring the total amount of loans approved so far by the Bank in its first year of operations to US$1,130 million.
Vice President and Chief Investment Officer DJ Pandian said,
“These are the Bank’s first port and railway projects and help us to build our capacity in these important sectors. Our support will also help Oman prepare to develop a world-class railway network and manage it in a highly professional manner, as well as opening up other investment opportunities for the public and private sectors.”
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Notes to Editor
1. The Asian Infrastructure Investment Bank (the Bank) is a multilateral development bank (MDB) conceived for the 21st century. The Bank began its operations on 16 January 2016.
2. The Bank will focus on the development of infrastructure and other productive sectors in Asia, including energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, urban development and logistics.
3. The loans for the two projects in the Sultanate of Oman were approved by the Bank’s Board of Directors at its meeting on December 8, 2016 in Beijing.
4. Duqm Port Commercial Terminal and Operational Zone Development Project is estimated to cost US$353.33 million while the Bank’s financing will be US$265 million. The objective of the Project is to help Duqm Port capture its full economic potential through improved transport efficiency, strengthened logistics services, facilitated mineral exports, and reduced supply chain delivery time and costs for the wide spectrum of industries in the new Duqm Special Economic Zone and its broader port hinterland.
5. The Railway System Preparation Project is estimated to cost US$60 million, while the Bank’s financing will be US$36 million. The objective of the Project is to achieve full readiness for the construction of a new railway system that will support the Sultanate of Oman with the diversification of its economy and to develop the Sultanate of Oman’s position as a transport hub and as an exporter of minerals.
6. The Sultanate of Oman’s diversification strategy entails moving away from the exportation of crude oil to mineral exports, manufacturing, logistic service arrangement, warehousing, fisheries, tourism as well as value added industries in the oil and gas sector such as refinery, petroleum storage, and petrochemical plants.
7. In its first year of operations, the Bank has so far approved eight projects, including three standalone projects and one private sector project. A list of projects that have been approved and those under development may be found at here.
8. Further details about the Bank may be found at www.aiib.org.
Media contact:
Song Liyan
Telephone: 0086 10 83580035
Email: lsong@aiib.org
