Saudi's SRO Gets 2 Bids For Mecca-Medina Railway's Second Stage

3rd Jul 2010 17:58

RIYADH (Zawya Dow Jones)--Saudi Railways Organization said Saturday it has received two bids for the second stage of a 450-kilometer railway that will link the holy cities of Mecca and Medina to Jeddah. The two bidders for the contracts are Al Rajhi Group and AlShoula Group, SRO said in a statement. The $1.4 billion in contracts will involve laying tracks, installing signals, and communications, operation and maintenance. Upon completion of construction, the bidder is required to operate and maintain the entire infrastructure for 12 years. A group of advisers and consultants including Scott Wilson Group PLC (SWG.LN) will first study the technical proposals, then look into the submitted financial bids. In April, SRO said it extended the deadline for bids for the second stage from April 30 to July 3. The extension, which was requested by bidders, won't affect completion of the Haramain project slated by the end of 2012, it said. The rail line will connect Mecca with Medina via Jeddah and King Abdullah Economic City. This will also connect to the Landbridge and the north-south line, linking Saudi's population centers with industrial zones and the new economic cities. The project aims to ease the congestion on the road linking the two cities during the Muslim haj and umrah pilgrimages and reduce the duration of the road trip. The railway is expected to carry at least 3 million people a year. -By Summer Said, Dow Jones Newswires; +966-546-842-373; [email protected] (END) Dow Jones Newswires July 03, 2010 12:58 ET (16:58 GMT)