Saturday November 21, 2020
Coinciding with the 50th National Day and continuing to support the Sultanate’s socio-economic and infrastructure development goals, Oman’s leading and most trusted Islamic Bank, Bank Nizwa, signed a financing agreement with Oman National Engineering & Investment Company SAOG (“ONEIC”) to establish Sahalnoot sanitation network for Salalah Sanitary Drainage Services Co SAOC (“SSDC”). The project, valued at OMR 45 million, 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.
Bank Nizwa is pleased to support this essential Salalah infrastructure project by providing Sharia compliant financing to the tune of OMR 20 million. The finance 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 Mr. Khalid Al Kayed, CEO of Bank Nizwa and Dr. Rashid Al Ghilani, CEO of ONIC as well as Bank Nizwa’s senior management including GM, AGMs and Head of Dhofar business division and other senior officials.
The project is the first of its kind in the country being awarded on build, operates and transfer (BOT) basis and represents another milestone in the Public and Private Participation (PPP) of large infrastructure projects in the Sultanate of Oman. 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 70 km 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.
Dhofar region is one of the prominent regions where Bank Nizwa participates in range of activities for economic development through its Sharia compliant banking products and services catered to various industries with coverage in the region that includes cement, construction, poultry, red meat plant, food security, municipal waste collection (green financing) as well as significant retail presence with a major branch in Salalah operating since 2013.
Sheikh Khalid bin Abdullah Al Khalili, Chairman of Bank Nizwa said, “At Bank Nizwa, we believe in consistency and continuity to offer benchmark products and services in Oman’s evolving banking landscape. We are committed to be 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 (food security), municipal waste collection (green financing), among others. We also have significant retail presence in the region with fully operational branch services. 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. The Bank will continue to expand its client franchise organically by deepening client relationships, train and retain talents, and invest in the right products and services. It strives to be the financial partner of choice for the people and enterprises of Oman.”
The project execution by ONEIC encompasses construction of the main pumping station with all required civil, electrical, mechanical, instrumentation, control, automation, and other services, to complete the work. A Fiber Optic Duct network will be laid for an approximately 106 Km, with a 110 mm diameter pipe duct (inside 25 mm diameter pipe duct), and another 81 Km of only 25mm diameter pipe duct, which will connect Pumping station 1 and Pumping station 2 with the SSDC Scada system. Additionally, the roads and wadi crossing structure will be built by an open cut and Trenchless Method, complete with all necessary works. The entire project will be under CCTV survey and will entail reporting of the completed sewer network construction. Besides this, ONEIC shall carryout the construction of all housing connections for 1500 existing plots/buildings, during the period of the project. In case there is an increase in the number of the occupied plots, ONEIC shall construct additional house connections.
Furthermore, sharing his views, Sheikh Aimen Ahmed Sultan Al Hosni, Chairman of ONEIC, 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. Besides the tangible benefits that the project will bring to this part of Salalah, it will also provide employment opportunities of a considerable size and for the long-term.”
Through strategic partnerships like these, Bank Nizwa is well-positioned to spearhead the growth and solidify its leadership in the Islamic banking and finance in Oman. The Bank will continue to expand its franchise organically by deepening client relationships, train and retain talents, and invest in right products and services. It continues to strive to be the financial partner of choice for the people and enterprises of Oman.
ONEIC is well-established in construction, operation & maintenance of sewerage treatment plants and has extensive experience in laying pipelines for the sewerage connections and for domestic connections. The scope of construction by ONEIC includes Main Pumping Station, Construction of Fiber Optic Duct network, construction of roads crossing and CCTV survey. Additionally, ONEIC shall carryout the construction of connection for 1,500 existing Plots/Buildings during the construction period of the project.
Bank Nizwa is the first and leading Islamic Bank in Oman, and is translating its efforts to be a vital contributor to the growth of the national economy. Bank Nizwa’s Wholesale Banking Group is strategically set up to align with and cater clients across all markets in Oman from SME, Mid Corporate, Large Corporate and Project Financing. All the business divisions are supported by specialized knowledge-based inputs from specialist in Investment, Trade Finance, Treasury and Support to ensure end-to-end Sharia compliant services in cost-effective and client-friendly manner with ease of quick delivery in a competitive market. Bank Nizwa’s corporates financing has closed several milestone transactions in the Manufacturing, Utilities, Construction, Retail, Hospitality, Aviation, Logistics, Tourism, Education, Waste Management, Metals & Mining, Medical and Food sectors. With 100% Sharia compliant solutions, Bank Nizwa has also successfully carved out a niche market in fast-expanding sectors, like infrastructure and utilities. The team works closely with clients to provide complete tailor-made business solutions across wide spectrum of industry segments.