This summary covers an application made by Standard Chartered Bank, acting as Global Coordinator to the Ministry of Finance (MoF) in Oman, to cover a proposed commercial lending facility to be provided to the Government of the Sultanate of Oman represented by the MoF, to develop priority projects within the Duqm Special Economic Zone (The Project). MIGA’s coverage has been sought in relation to Non-Honoring of Sovereign Financial Obligations (NHSFO) Guarantees on a debt financing structure of up to US$ 2.0 billion (including principal, interest, MIGA premium and other financing costs) for a tenor of up to 15 years.
The Project consists of financing and/or refinancing of seven infrastructure projects within the Special Economic Zone (SEZ) at Duqm, Oman pertaining to the construction of infrastructure and roads at the port’s commercial pre-gate, design and dredging for a new liquid bulk berth, roads and corridors connecting the refinery to the liquid bulk berth and dams and channels to protect the area against floods. These seven projects are considered priority projects within the scope of the SEZ.
The Project is expected to have developmental benefits within Oman and the broader region. In Oman, the Project has the potential to contribute to the national economic diversification strategy by expanding the logistics sector and Oman’s export capacity. It will also expand economic activity and employment in Al Wusta governorate, a comparatively less developed region of the country.