French company gets IT contract for airports, Omani staff stay

MUSCAT: The Ministry of Transport and Communications (MoTC) has said in a statement that remaining works related to IT and security systems (package MC6) has been awarded to Thales Security Solutions, following the termination of contract with Ultra Electronics last month.

The ministry said that the new contractor has agreed to hire all part-time 51 Omanis who were working with the previous contractor on the project.

The ministry added that the works were not affected, especially at Salalah Airport, during the period which the agreement with the previous contractor was cancelled.

It may be noted that Ultra Electronics Holdings plc had earlier issued a statement that its JV Company with the Oman Investment Corporation had received a notice of termination of its IT contract for airports in Oman, which was formally terminated on February 9, 2015.

The company stated that it is cooperating with the employer (MOTC) and the engineer (Hill International) to effect a formal handover of the contract to what has been termed a “Completion Contractor”, after which a settlement account will be produced by the employer.

The substantive reasons given in the notice of termination are related to the joint venture not meeting contractual milestones.

Ultra had said it will incur a £47m provision for the financial year 2014 linked to that contract, which will include the write-off of the contract balances, together with provision of all known liabilities.

The cumulative revenue recognised from the contract was £114m, with 2014 revenue limited to £12m.

SOURCE: OMAN DAILY OBSERVER

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