Work on a new industrial port at Sohar in Oman is progressing with construction of the breakwater nearly complete, a report said.

Oman is spending RO70 million ($181 million) on the port's first-phase development, which includes dredging and reclamation work and building the breakwater, the Oman Daily Observer reported.

The deepwater port is expected to be ready by May 2003.

In the first phase, the port will have two LNG cargo berths, two bulk berths for a proposed aluminium smelter at Sohar, two general cargo berths and one container berth.

Daewoo of South Korea is building the breakwater under a RO25 million contract while Hyundai Engineering and Construction is executing the dredging and reclamation work at a cost of RO9.8 million.

The next phase will involve development of the port's infrastructure, administrative buildings and sheds and the provision of power, water and telecommunication services.