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Muscat-listed Galfar wins Omantel's $7m HVAC contract

18-month contract will bring "reasonable income" for Omani contracting giant, CEO Dr Hans Erlings says

Muscat-listed Galfar has been awarded an HVAC contract by Oman Telecommunications Company, also known as Omantel.
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Muscat-listed Galfar has been awarded an HVAC contract by Oman Telecommunications Company, also known as Omantel.

Galfar Engineering & Contracting, among Oman’s biggest building companies, has been awarded a $7.4m (OMR2.8m) contract to implement heating, ventilating, and air-conditioning (HVAC) work for Oman Telecommunications Company, also known as Omantel.

In a statement to Muscat Securities Market, where it is listed, Galfar said the HVAC contract includes the replacement and upgrade of systems for the telecommunications giant’s exchanges in Muscat, Wattayah, Azaiba, and TCC Salalah – Phase 2.

The deal also includes “allied electromechanical and civil works”, according to the Galfar bourse statement. Completion is due in 18 months from the date of Engineers’ Instructions issuance for work commencement.

Galfar’s chief executive officer, Dr Hans Erlings, said in the statement that the company expects “reasonable income from this contract”.

The news comes after a solid 2018 for Galfar, which in October 2018 was awarded a $50.6m (OMR19.5m) engineering, procurement, and construction contract by a joint venture of Samsung and Petrofac. The deal includes Packages 1 and 3 of the main contract for Duqm Refinery, and is due to complete within 23 months of the sub-contract’s commencement, which was marked on 7 October last year.

The contract was followed in December 2018 by another deal for Duqm Refinery. Saipem awarded the $13.9m (OMR5.3m) deal to Galfar for site preparation work at Ras Markaz, with the contract’s scope due to complete on 30 April, 2019.


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Construction Week - Issue 742
May 23, 2019