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China to build 4 giant tankers for Oman Shipping Company

Monday, 16 August 2010 20:35

Oman (Muscat) - China (Beijing)- The Sultanate's Government and the "Export-Import Bank of China" signed a funding agreement in Beijing today to build four giant tankers for Oman Shipping Company (OSC), which is owned by the Sultanate's Government.

The agreement was signed on behalf of the Sultanate's Government by Ahmed bin Abdulnabi Macki, National Economy Minister, Deputy Chairman of the Financial Affairs and Energy Resources Council and OSC Chairman whilst it was signed on behalf of the Export-Import Bank of China by Li Ruogu, Chairman and President of the Bank.

Under this agreement, the Export-Import Bank of China will fund the building of four giant tankers with a capacity of 400 thousand tons for OSC to carry iron ore pellets from Brazil to the factory of the Brazilian Company (Vale) in Sohar Industrial Estate in the Wilayat of Sohar.

Ahmed bin Abdulnabi Macki, National Economy Minister, Deputy Chairman of the Financial Affairs and Energy Resources Council and Chairman of OSC explained that this funding confirms the trust of the leading international financial institutions in the financial and economic policies pursued by the government of His Majesty the Sultan over the past 40 years.

In a statement to Oman News Agency (ONA), Macki said that the four tankers are being built by Jiangsu Rongsheng Heavy Industries Group. It is expected to receive two tankers at the end of next year 2011 and the other two during 2012 which are leased to Vale Company under a long-term contract.

Macki also pointed out that this agreement represents another positive step in strengthening ties of cooperation and enhancing the strong bilateral economic relations between the two countries.

He pointed out that signing this agreement would be an additional incentive for deepening the Omani-Chinese relations as it would also contribute in promoting the spirit of mutual understanding, as well as, joint desire to continue strengthening economic and social cooperation and coordination in all spheres.

He added that he is looking forward to more participation by the Chinese companies in the current developmental projects being under way, such as, Al Duqum area projects, railway, roads, electricity, water, in addition to the manufacturing industries across different industrial estates and Salalah Free Zone, in addition to the development of the small and medium enterprises (SMEs) and the usage of the Chinese technology in the field of solar and wind energy. Macki welcomed the Chinese technical assistance in promoting researches and development in industry, agriculture and fisheries.

Macki held two separate talks, with Li Ruogu, Chairman of Import-Export Bank of China and with his deputy Su Zhong.

The talks discussed a number of aspects pertaining to developing investment cooperation and commercial finance for the developmental projects being implemented by the government, as well as, future projects to be implemented during the 8th five-year plan that will start upcoming year 2011.

Macki also pointed out that the Omani-Chinese relations witnessed a rapid growth over the last three decades, particularly in the commercial, investment and economic fields as the commercial exchange in the previous years (2005-2009) witnessed an increase in the Chinese imports to Oman from RO 81.8 million (USD 212.7 million) in 2005 to RO 329.4 million (USD 856.4 million) in 2009 whilst the Omani exports to China increased from RO 1.6 billion (USD 4.2 billion) in 2005 to RO 1.8 billion (USD 4.7 billion) in 2009. This is attributed to the sharp decline in the oil price although it rose in 2008 to RO 4.1 billion (USD 10.7 billion). Macki underlined that future expectations are focused on activating commercial opportunities between the two countries through encouraging mutual participation in international commercial exhibitions, as well as, activating the role of the commerce and industry chambers of the two countries to facilitate and increase the visits of businessmen from both countries.

Macki pointed out that the Sultanate's social and economic development strategy depends on human resources development and the establishment of a stable economic framework, as well as, encouraging the foundation of competitive and active private sector, availing appropriate conditions to achieving economic variety, promoting the standard of living for the Omani people and maintaining the achievements accomplished in the previous decades.

Macki said that the Omani economy is recording a positive growth rate this year as it is expected to hit 6.1% for the fixed prices and 18.4% for the current prices. The governmental gross revenue is expected to reach RO 6.4 billion (USD 16.6 billion) whilst the governmental expenditure is expected to reach RO 7.2 billion (USD 18.7 billion) including RO. 4.4 billion (USD 11.4 billion) for the current expenses and the investment expense is expected to record RO 2.1 billion (USD 5.5 billion). He indicated that any increase in the national revenue would be directed to decreasing the current deficit that estimated to hit RO. 800 million and the deficit of 2009 that hit RO. 590 million.

The Chinese side expressed their preparedness to provide all facilities and technical support for the developmental projects being executed by the Sultanate's government. They also emphasized that the Sultanate's financial, economic and developmental policy is highly appreciated and admired by the Chinese public and private financial associations.

The talks were attended by Sheikh Abdullah bin Saleh al Sa'adi, Sultanate's ambassador to China and members of the accompanying delegation.
(ONA)

Global Arab Network

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Last Updated on Monday, 16 August 2010 20:57

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