Carillion chosen for Oman project

UK-based contractor Carillion, which recently issued another profit warning, has been awarded a £240 million (US$317.6 million) contract to build a hospital in Oman.

The Oman Ministry of Health chose Carillion Alawi – 50:50 JV between Carillion and the Zawawi family – to design and build the New Sultan Qaboos Hospital in Salalah.

The contract comprises a two-stage design and build process. The initial design and mobilisation phase is set to begin immediately and will be funded directly by the customer.

The second phase is scheduled to commence 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 Oman Ministry of Health, for a hospital in Khasab. The terms are similar to those of the Salalah award, and the contract would have estimated value of £120 million ($158.7 million).

Carillion said it was continuing to look at ways to de-risk its operations in the Middle East. Both of these contracts were procured through lower risk procurement routes, such as by seeking support from UK Export Finance to secure project finance for customers.