The construction contract for Omagine, a $2.5-billion mixed-use tourism and real estate project in Oman, is expected to be signed before the end of June, a report said.

“The first draft construction contract is targeted for completion in May which will be used by the parties as a basis for final negotiations and conclusion of the ‘final draft construction contract’,” added the Muscat Daily report, quoting a filing with the US Securities and Exchange Commission.

“The management presently estimates that the CCC-Oman contract will be signed by Omagine LLC and CCC-Oman before June 30,” Omagine Inc said, adding that the company is continuing extensive discussions regarding the contract.

“Over the past several months, the Omagine management, its engineering and construction consultants and its attorneys held many meetings among themselves and with multiple CCC senior managers and executives in Muscat (Oman), Athens (Greece), Dubai (UAE), London (UK), and Pittsburgh and New York (US),” Omagine was quoted as saying in the report.

It was agreed that the CCC-Oman contract will be based on the internationally accepted contracting standards promulgated by the International Federation of Consulting Engineers (Fidic). Omagine Inc said that ‘first draft construction contract’ would outline a two-part ‘framework agreement’ specifying a ‘pre-design period’ and a ‘post-design period’.

Regarding the financing of the project, Omagine Inc said the management is now in the initial stages of the processes required to arrange the necessary financing to execute the Omagine Project, according to the report.

Omagine LLC explects to appoint a financial adviser by the end of June, who will advise on capital structure and lead the syndication of the debt financing required to execute the project.

The company said the Omagine Project will be developed in several phases, adding that a number of financing agreements will be executed during the development.

The Omagine site covers an area of one million sq m of prime beachfront facing the Gulf of Oman just west of the capital city of Muscat and 9.6 km from Muscat International Airport.

The project will be an integration of cultural, heritage, educational, entertainment and residential components, including: a theme park containing seven pearl-shaped buildings, each 20 m in diameter, exhibition buildings, a boardwalk, an open-air amphitheatre and stage; open green areas and a canal and an enclosed harbour and marina area.

It will also feature retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and about 2,000 residences to be developed for sale by Omagine LLC.