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Oman Ministry of Health awards $28m O&M contracts to ONEIC

Facilities management contracts pertain to operations and maintenance work for buildings in Dhofar, A'Sharqiya

ONEIC has won two health ministry deals in Oman.
ONEIC has won two health ministry deals in Oman.

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.

For more information on Oman's ongoing liqudity struggles, listen to the Construction Week Viewpoint podcast below.

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Construction Week - Issue 737
Apr 14, 2019