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United States : PSC Group has pulled out the tender for South Batinah Logistics Area
Publish Date : 11-Apr-2016
The conglomerate driven by the Port Services Corporation (PSC) exits from the tender for the management and operation of the dry port at the South Batinah Logistics Area. The conglomerate driven by PSC was shortlisted to take part in the tender last year.
PSC said, Based on an intensive analytical study, consortium members decided to withdraw from the tender since the project was not found to be commercially and financially viable. PSC included that a letter of regret was sent to Oman Logistics Co (OLCO).
OLCO, a unit of the Public Establishment for Industrial Estate (PEIE), is accountable for the making of the South Batinah project.
OLCO had released a request for proposal (RFP) to the shortlisted firms, comprising the conglomerate led by PSC.
In its 2015 firm report, PSC had said that its management team, together with different conglomerate members, called Borusan Makhazen and Salalah Port Services Co, were in the way of preparing the proposal to be presented to OLCO by April 3, 2016.
PSC had said, The tender conditions/ terms have been amended by OLCO several times, thus delaying the civil works, and the final terms included in the RFP seem one-sided, favouring OLCO, which makes the project unattractive to the companies bidding for the project due to lack of fair terms to both parties. The consortium members are however preparing the RFP and will put their conditions which will protect the interest of the consortium. The timeline indicated in the RFP suggests that even after award of the tender, the expected days of commencement of operations will not be earlier than middle of 2018.
