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Sun October 20 2019

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Carillion JV lands £240m Oman contract

16 Nov 17 A 50:50 Carillion joint venture is the official preferred bidder for the design and construction of a hospital in Oman and is also lined up for a second scheme.

Carillion Alawi, a 50:50 joint venture with the Zawawi family, has signed a letter of award with the Oman Ministry of Health for the New Sultan Qaboos Hospital in Salalah. The contract has an estimated value of about £240m to the JV.

Work on the contract will involve a two-stage design and build process. The initial design and mobilisation phase, which will be directly funded by the client, will begin immediately. The second phase is due to begin 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 approximately £120m to the joint venture.

Carillion said that both contracts are being procured via lower-risk procurement routes, for example through seeking support from UK Export Finance to secure project finance for clients.  The group continues to look at ways in which it can de-risk its operations in the Middle East, said Carillion, working with its partners in the region to secure the future of this business.

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