Mr Darwish bin Ismaeel al Balushi minister Responsible for Financial Affairs said that Oman's ambitious National Railway System will be implemented with funding support pledged by fellow members of the Gulf Cooperation Council.
Mr Al Balushi said that the project is among a slew of infrastructure schemes identified by the government for implementation with financial assistance earmarked by the GCC states. The bloc has pledged a total of USD 10 billion in financial aid, payable in a yearly tranche of USD 1 billion over a 10 year period.
He said that "The projects towards which the GCC financial aid will be utilized are currently being identified. They include the railway project, Al Batinah Expressway, electric and water networks, and the provision of infrastructure at Duqm Special Economic Zone and other industrial estates. Underlying all of these projects are objectives aimed at strengthening economic integration, serving the unified GCC market, facilitating the flow of trade and services, and the movement of citizens among the GCC countries."
Significantly, the announcement will help dispel misgivings about the government's commitment to proceed with the implementation at this injunction, given the staggering cost of the venture, estimated at OMR 6 billion. Seen in conjunction with Tuesday's announcement by the Supreme Council for Planning, that the railway network will now be diesel powered, as opposed to an earlier recommendation for electrical powered locomotion, the move is expected to give strong impetus to efforts to accelerate the development of this strategically important project.
Mr Al Balushi added that GCC financial aid to the Sultanate would be made available either as a collective contribution or through bilateral means.
He said that "This assistance, as you all know, was decided initially as a collective initiative of four Gulf states to provide aid to the other two countries, which includes Oman. Later it was decided to treat this subject as a bilateral issue. Within this framework, we started coordinating with two specific countries with which we have since reached an advanced level of negotiations. The countries in question have asked for a list of projects to be financed, for which the required funding will be provided according to the progress made in the implementation of those projects."
He added that given the cost of the rail project, estimated in range of OMR 6 billion, funding assistance is expected to come from all four GCC member states that have pledged financial aid to Oman.
Oman's National Railway System is part of the proposed inter GCC railway network that will run from Kuwait to Muscat and onward to Salalah and possibly to Yemen. The 1,061 kilometer national network will be built in phases. Phase 1 will consist of four segments: from Sohar Port to Muscat an 8 kilometer spur line to Sohar Railway Yard, and a 20 kilometer link from Al Misfah to Muscat Central Station; from Muscat to Duqm Port comprising a 486 kilometer line from Al Misfah to Duqm, and an 84 kilometer link from Sinaw to Ibra; from Sohar to the UAE border via Al Ain comprising a 136 kilometer line from Sohar to Al Ain and a 27 kilometer spur to Buraimi and from Sohar Port to Khatmat Malaha 58 kilometer on the UAE border.
Meanwhile, the double track network will be designed for both passenger and freight transportation, although freight movement will be prioritized in the initial phases of the project.
