Bank Nizwa signs RO20mn financing deal with ONEIC
Bank Nizwa has signed a financing agreement with Oman National Engineering & Investment Co (ONEIC) to establish Sahalnoot sanitation network in Salalah for Salalah Sanitary Drainage Services Co (SSDC).
The project, valued at RO45mn, is one of the most identified key projects that will support overall development in the Dhofar region and follows the national direction of encouraging more private sector investments in the country’s infrastructure.
In a press statement, Bank Nizwa said it will support this essential Salalah infrastructure project by providing Sharia’a-compliant financing to the tune of RO20mn.
The financing agreement was signed at Bank Nizwa headquarters by Sheikh Khalid bin Abdullah al Khalili, chairman of Bank Nizwa and Sheikh Aiman bin Ahmed al Hosni, chairman of ONEIC in the presence of Khalid al Kayed, CEO of Bank Nizwa and Dr Rashid al Ghilani, CEO of ONEIC.
The new sanitation network project in Salalah is the first-of-its-kind in Oman being awarded on build, operate and transfer (BOT) basis and represents another milestone in the public and private partnership (PPP) of large infrastructure projects. The project involves construction, operation and delivery of the sewerage network project in Sahalnoot area in Salalah. It covers the construction, operation and delivery of the sewer network that includes upgrading and extending more than 70km of sewerage pipes covering key population areas as well as much needed main pumping station to accommodate the flows of Sahalnoot and future neighbouring areas.
The project’s implementation period is 30 months followed by 15 years of operations and maintenance period. The first package of the project is expected to serve 5,500 properties and is expected to provide new employment opportunities to citizens.
Khalili said, “We are committed to being a vital contributor to the nation’s growing economy and our presence in the Dhofar region has been noteworthy. Bank Nizwa has successfully executed several projects in the region, across sectors such as cement, construction, poultry, red meat plant, municipal waste collection (green financing), among others. Through strategic partnerships like these projects, Bank Nizwa is well-positioned to spearhead the growth of Islamic finance and solidify its leadership in the sector.”
Hosni said, “Financing partnerships like these not only support the government in reducing running costs and expenses but also helps boost ONEIC’s delivering capacity. With the project covered successfully through strategic funding in line with the project goals, we are positive that it will also create a healthy environment for the Sahalnoot district area.”