MIGA has been asked to consider an application by the Ministry of Finance of the Sultanate of Oman and Standard Chartered Bank (acting as Global Coordinator) to cover the commercial debt provided to Duqm Special Economic Zone in the Sultanate of Oman. MIGA coverage has been sought to cover the 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. Further details about MIGA cover is in theSummary of Proposed Guarantee (SPG)published on MIGA website on 02/21/2019.

The Special Economic Zone (SEZ) at Duqm was established under Royal Decree (RD) Number 119/2011 which superseded RD 85/2006 establishing the area as a public good. The SEZ stretches 2,000 square kilometers (km2) with a 90 km long beach front, which makes it the biggest in the Middle East region. The SEZ is located in Al Wusta Governorate on the Omani coast, approximately 550 km south of Muscat, the capital of Oman. The SEZ includes functional zones: a deep-water port (Duqm Port), a dry dock, a regional airport, a heavy/medium and light industries complex (including a refinery and petrochemical complex), a residential and commercial area, a tourism area, a logistic services area and an industrial fisheries complex with a port. These zones are to be connected by a multimodal transport system that will also connect the SEZ with nearby regions. Around 45% of SEZ (about 900 km2) is being currently developed, with the remainder of the area to be developed in future phases. The Port entered into an early operations phase in 2012 and currently remains in this stage with a fully functional commercial quay capable of handling heavy lift project cargo, general cargo, dry bulk and containers. In addition, the Port offers a wide range of services such as the availability of marine pollution prevention (MARPOL at dry dock) facilities, fresh water supply, fuel bunkering and domestic waste collection & treatment facilities. Being closely located to the major oil & gas and mining projects in the country, Duqm is seeking to increase the activity level at the Port exponentially in the years to come.

The development, management and regulation of the SEZ is overseen by the Special Economic Zone Authority at Duqm (SEZAD), a statutory institution empowered under the Royal Decree (RD)No. 119/2011 with regulatory, administrative, fiscal and economic responsibilities within the Duqm The SEZ is managed by a Chairman who holds the ranks of a Minister. RD 79/2013 grants SEZAD the regulation rights of the SEZ, registration of the projects as per Commercial Registration Law, licensing of tourist projects, and issuance of environmental permits as well as taking the necessary environmental measures to implement the environment protection and anti-pollution law. The RD 79/2013 further stipulates that labor office will be established at SEZ by a Ministerial Decision (MD) issued by the Ministry of Manpower.

SEZAD has established its development/commercial arm the Oman Company for the Development of Special Economic Zone at Al-Duqm (Tatweer) in 2013. Tatweer is responsible for providing project management services for all SEZAD funded projects in the SEZ, particularly strategic infrastructure projects that support investments within SEZ. Tatweer assists with land preparation, monitors contractors' progress during the construction stage, and ensures all necessary infrastructure services for new facilities, such as water, electricity, gas, telecommunications, roads and transportation. Once the construction is completed, Tatweer acts as facilities/asset manager within the special economic zone, and at that stage is responsible for facilities' operations and Health, Safety and Environment (HSE) oversight.

Within the SEZ, the development of Duqm Port is being financed by the Government of the Sultanate of Oman (GoO) from the Sultanate budget, and in conjunction with US$265 million loan from the Asian Infrastructure Investment Bank ("AIIB") specifically for the construction of infrastructure components related to the commercial terminal at the Port of Duqm (PoD). The Port of Duqm Company SAOC (PDC) is the Port Authority for the PoD and is responsible for the management and operation of the Port and its facilities, and navigation within and around the Port. PDC is a 50/50 joint venture between the GoO and the Consortium Antwerp Port (CAP). PDC has a concession contract with the SEZAD for 28 years to co-invest, develop, manage and operate the Port. PDC established an independent entity called Duqm Industrial Land Company to develop an industrial zone, which is outside the Port boundary but located within the SEZ.

The Port's development was initiated by the Ministry of Transport and Communications (MOTC) following a feasibility study in 2002 and based on technical and engineering parameters a suitable location in the Duqm area was completed in 2004. PoD maritime infrastructure and related work operations comprises the operations of the initial development of marine infrastructure (i.e., breakwaters, reclaimed land), navigable areas (i.e., Approach Channel, maneuvering area, berthing pockets). The maritime and related works was constructed between 2007 and 2012 by the MOTC. Landside and utilities are planned over 7 infrastructure packages: (1) internal roads, (2) commercial and Roll-on Roll-off (RoRo) berth, (3) security and customs area, (4) government berths, (5) administration building and gate, (6) land leveling, and (7) dry bulk and liquid berths. The security, commercial gate and custom area are currently under construction. The landside infrastructures are expected to be in place by 2019/2020.

The Port operations consists of an operational port largely focused on the resulting commercial quay - including a dry bulk terminal, container terminal and multi-purpose terminal - and to a lesser extent, the government berths. The subsequent PoD development will be developed in line with development plan Oman Vision 2040 and following stages consisting of the development and operations of a liquid berth and liquid storage areas on the lee breakwater, which is currently under development by Duqm Refinery. Simultaneously, the GoO established as a separate entity the Oman Dry Dock to support activities in the SEZ.

Another integral part of the SEZ is the Duqm Refinery which is being developed by the Duqm Refinery and Petrochemical Industries Company LLC (DRPIC) as a joint venture between Oman Oil Company (OOC) and Kuwait Petroleum International (KPI) to develop, build, own and operate an export refinery complex, with each shareholder holding 50% interest. The Refinery is comprised of a 230,000 barrels per day (BPD) complex refinery and onsite utilities, infrastructure and storage; product export terminal at the PoD, crude storage facility at the Ras Markaz crude oil terminal and a 28 inch 80 km crude pipeline from Ras Markaz to the Refinery. The Refinery will generate a number of products for the export market that will conform to international standards, including liquefied petroleum gas (LPG), naphtha, diesel, kerosene jet fuel (Jet A-1), petroleum coke and sulphur. The new export refinery complex will be designed and operated by DRPIC on a prepared plot covering 9 km2 within the proposed Heavy Industry Zone in the wider Duqm SEZ.

The Refinery is being financed by Equator Principles Financial Institutions and will be delivered through three separate Engineering, Procurement and Construction (EPC) packages:

It is also anticipated that 2000 hectares (ha) of land will be allocated for the development of the medium, heavy and petrochemical industries within the Industrial Zone of the Duqm SEZ. SEZAD usufruct agreements requires land to be returned to the same initial conditions.

The MIGA Project consists of financing and/or refinancing of seven infrastructure projects (sub projects) within the SEZ, pertaining mainly 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 (see Table 1 for details).

*Contact information not provided at the time of disclosure*

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/