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

Oman Ministry of Health awards $28m O&M contracts to ONEIC
ONEIC has won two health ministry deals in Oman.
Published: 10 April 2019 - 7 a.m.
By: Oscar Rousseau

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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