Oman’s Ministry of Health awards two contracts to ONEIC

Posted on 10th April 2019

Oman’s Ministry of Health awards two contracts to ONEIC
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According to *Constructionweekonline news report, Oman’s Ministry of Health has awarded local contracting outfit Oman National Engineering and Investment company (ONEIC) two five-year facilities management contracts, collectively worth $28m (OMR10.7m), to operate healthcare units in Dhofar and A'Sharqiya.

The more valuable of the two contracts is for the operation and maintenance (O&M) of government health units in Dhofar Governorate, which ONEIC will carry out for a fee of $15.2m (OMR5.8m).

Work on the facility will commence on 1 July, 2019.

The second Ministry of Health contract, awarded on the same day, is also for the O&M of undisclosed health facilities, located in the coastal A’Sharqiya South Governorate.

This contract is worth slightly less than the Dhofar deal, earning ONEIC $12.8m (OMR4.9m).

ONEIC, which was formed in 1978, offers services related to engineering, procurement, and construction; design and development of water-related industrial projects; and O&M projects. In recent years, the construction company has tried to diversify its services to alleviate pressure on its bottom line. 

Construction companies in Oman are facing financial headwinds as limited government spending – historically the growth driver of construction in the sultanate – impacts the availability of winnable work.

Market pressure saw ONEIC’s pre-tax profit fall from $6m (OMR2.3m) in 2017 to $4.6m (OMR1.7m) in 2018 – a year-on-year decline of more than a quarter.

*News source: https://www.constructionweekonline.com/products-services/180798-ministry-of-health-awards-omani-contractor-oneic-28m-contracts

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