BankMuscat and OAB to lead manage Barr Al Jissah

Muscat- BankMuscat and Oman Arab Bank have been appointed as lead managers of the prestigious Shangri-La Barr Al Jissah Resort promoted by Zubair Corporation. Though a final decision on sources of funds for the RO 65 million fully integrated resort at Barr Al Jissah is not yet finalized, debt equity ration is roughly estimated at 60:40, highly placed officials at the Zubair Corporation told the Observer.
Apart from local banks, some of the regional and international financial institutions are expected to participate in the loan syndication, said Hakim Magid Saud al Maameri, Tourism Manager at Zubair Corporation. "The financial advisors will have to come back to us with the details however, there are a lot of interest among bank and other investors"' he added. Arthur Anderson, which has conducted a feasibility study on the project, has prepared an information memorandum to help the banks to finalise loan syndication.
The construction cost of the resort buildings is estimated at RO 5 million and an addition at RO 15 million is required for associated work, said R Ravindran, Financial Controller (Tourism) at Zubair Corporation, while other investors are expected to join during the course of construction. Further, the company is to tap the capital market after three years of operation, which is mandatory.
The resort will be managed by the world-renowned Hong Kong-based Shangri-La Hotels and Resorts Group, which has strong presence in Far East and South East Asia.
Al Maameri said that the enabling works like site preparation and clearing of land would start by January next year.
The government has decided to construct a 4-km road to get access to the proposed resort site and a tender would be floated for the same shortly, Al Maameri revealed. "By November 2002, this road is expected to be ready and that will enable us to go to the second package of construction of the resort", said Al Maameri, adding: "The possession of the building is expected by 1 July 2005".
The fully-integrated project, coming up in an area of 500,000 sq mts area on the banks of the of the Gulf of Oman, will offer 715 rooms and expansive suites. The whole project comprises three hotels - a deluxe, a five star and a four-star hotel - 30 serviced apartments and exclusive private quarters. An exclusive Spa and a health club managed by the Singapore based Banyan Tree will be other attractions of the resort. Other features include 6,000 sq mts of pool area, 10 specialty restaurants that will provide a wide choice of cuisine and conference halls looking on the sea, which is a unique feature in the Arabian peninsula. It will have its own water desalination unit, water treatment plants, cooking units and electricity distribution system, all supported with ample auxiliary systems.
The resort is expected to provide employment to around 1,200 people, of which 40 per cent will be Omani nationals. In addition, around 4,000 people will get indirect employment in supporting service providers like suppliers, vendors and tour operators.
Wimberly Allison Tong & Goo, a renowned name in the world of hotel and resort design, is the master planner and architects. Their portfolio includes some of the finest projects in numerous locations around the world including the 'Sun City' Resort in south Africa. After an intense international search among the world's Wilson & Associates Inc of Singapore, haad been appointed by the promoters for the ambitious project.
Similarly, W S Atkins International & Co, premier consultant engineers, has been assigned with the work of overseeing the project. Derek Lovejoy Partnership, which has landscaped some of the most regal resorts and places in world, will now bring their special taste, style and experience to Oman. Further, the US-based Turner International is the projects manage of the resort.