Two groups bid for Saudi rail project

French and Spanish groups bid for second phase of works on Makkah-Madinah railway.
Two groups bid for Saudi rail project
HOLY CITY: The railway will link the Red Sea port of Jeddah with the holy cities Makkah (pictured) and Madinah. (Getty Images)
By Bloomberg
Sun 04 Jul 2010 11:52 AM

Saudi Arabia said two groups submitted bids for the second phase of a railway project to link the Red Sea city of Jeddah with Makkah and Madinah, Islam’s two holy cities, after three other consortiums declined to bid.

A Saudi-Spanish group led by the local Al-Shoula Holding Group and a partnership of France’s Alstom SA and the Riyadh-based Al-Rajhi Group submitted bids on Saturday for the estimated $12.5 billion contract, the Saudi Railways Organisation said in a statement issued by the Saudi Press Agency.

Three other groups, including a partnership of Saudi Binladin Group, Deutsche Bahn AG and Siemens AG, a Chinese consortium led by China South Locomotive & Rolling Stock and a group including South Korea’s Hyundai Engineering & Construction and Samsung Engineering did not bid for the project, the SRO said.

The second phase of the Haramain High-Speed Railway project will involve supplying trains and operating the 450km (280-miles) link for 12 years. Saudi Arabia in March last year signed a SR6.8bn ($1.8bn) contract with a group of companies led by Al-Rajhi Group to help build the line, which will ferry Muslim pilgrims between the three cities.

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