Total investment in the project is expected to touch US$10bn by 2022, officials said at the signing ceremony on Monday.
Ali Shah, general manager of China-Arab Wanfang Investment Co Ltd and chairperson of Oman Wanfang LLC, signed the agreement on behalf of the Chinese side.
The signing ceremony was attended by H E Wang Yong, a Chinese State Councilor; H E Sayyid Badr al Busaidi, secretary general of the Ministry of Foreign Affairs; Liu Kewei, vice-chairman of China's Ningxia province; and a number of officials from both countries.
Welcoming Chinese investment in Duqm, H E Jabri said the signing of the agreements reflects the sultanate's investment environment.
He said, “Chinese investment in Duqm is a great addition to the current investments in Duqm. Sezad is keen to diversify investments. Efforts made during the past years have attracted investments from the GCC, Asia, and Europe. We hope that diversity would contribute to attract Omani experience specialised in many areas related to ports, petrochemical industries, fishery industries, tourism, trade and other areas.”
Oman Wanfang LLC is the main investor in the industrial park project, which will be spread over 1,172 hectares and divided into three main categories.
The first area of about 870 hectares would be indivisible and allocated to heavy industries, with the other two categories catering to medium and light, and mixed-use industries. Oman Wanfang would allocate this land under sub-usufruct conventions to other Chinese investors and companies. It will also be responsible for operation and maintenance of infrastructure on site unless applicable systems in the sultanate require otherwise.
The two sides agreed on the minimum development requirements and implementation phases, which will include development of infrastructure facilities and the establishment of a number of end-user projects. Oman Wanfang would also assume the role of owner or director of the site toward the end-user and tenants of divisible plots.
The second category will be on an area of about indivisible ten hectares allocated to the implementation of a tourism project.
The third category will be on an area of 292 hectares allocated for the establishment of an oil refinery and petrochemicals complex. The production capacity of the refinery will be about 230,000 barrels per day.
The agreement signed between Sezad and Oman Wanfang states that the commitment of the company in this context is not limited to the development of the land, but extends to the construction of the oil refinery, subject to receipt of necessary permits and approvals by the competent authorities in the sultanate.
The agreement stipulates that Oman Wanfang shall develop at least 30 per cent of the divisible land within five years. It also states the need to embark on the construction of the projects on indivisible land (tourism compound) within two years from signing the agreement and that the completion date of the project would be within four years from signing of the agreement or return land to Sezad.
Oman Wanfang asked for permission to build housing facilities to accommodate nearly 25,000 people supposed to live and work in Sezad, whereas the total required number of employees would be about 11,400 until 2022, excluding construction workforce.
Nearly 35 projects would be implemented in the China-Oman Industrial Park. As many 12 projects will be in the field of heavy industries, including those producing commercial concrete, building materials and related industries, glazed glass, methanol and other chemicals.
The light industrial zone will have 12 projects, including solar power and battery units, production facilities for equipment for 10,000 SUVs, oil & gas tools, pipes, half a million tonnes of colourful panels, assembling bicycles, garments, as well as a variety of other projects.
There will be eight projects in the mixed-use area, including a training centre, a school, a hospital office, and a sports centre. The tourism zone shall have a five-star hotel. This is in addition to the oil refinery and petrochemicals projects.