RIYADH: Transport Minster Jabara Al-Seraisry said Saturday the SR30.8 billion contract for Phase II of the Haramain High Speed Rail Project (HHSRP) linking the two holy cities of Makkah and Madinah was awarded with total transparency and fairness.
"Formalities in (the award of contracts) for the HHSRP were completed strictly adhering to internationally followed principles of transparency and fairness and with the aim of achieving the highest standards in the world," Al-Seraisry, who is also chairman of the Saudi Railway Organization (SRO), said in a statement to the Saudi Press Agency.
In order to guarantee the best bid in terms of finance, technology and standards, the ministry invited global bids from companies specializing in high-speed railways, Al-Seraisry said.
A high-level committee of the ministry, SRO and the Public Investment Fund in addition to international experts specializing in evaluating and studying bids scrutinized the bids ensuring total transparency and competitiveness, he said.
The minister also pointed out the contract for the second phase of the project, which was signed with Al-Shoula Co. representing a Saudi-Spanish Consortium on Jan. 15, is one of the largest projects for high-speed rail in the world.
"The winning consortium was selected because it quoted the lowest," the minister said, adding that the bid was also compared with the costs of similar projects undertaken in other countries.
"For instance, the cost of the 88-km high speed project linking Paris with Brussels in 1997 was approximately 1.5 billion euros, equivalent to SR6 billion at the time. The cost of the 200-km high-speed rail in Belgium, which was commissioned in phases beginning from 1997, was 5.5 billion euros, equivalent to SR22 billion at the time," the minister pointed out.
"It means that the cost of a kilometer of high speed rail was SR70 million and that is without considering the tougher terrain and other factors in the Kingdom compared to ones prevailing in those countries," the minister said.
He added that if the project started this year the cost would have been higher in view of the present inflation.
"The work required for the HHSRP is more difficult and demanding compared to previous projects as it involves laying railway lines, manufacture and operation of equipment and installation of systems of telecommunications, signals and electrification apart from importing a fleet of train engines and coaches. The contract also involves operation and maintenance of the project over a period of 12 years in addition to establishing a training center for Saudizing the project.
He said the length of the 450-km railway and extreme weather conditions and the uncommon rush during the Haj and Umrah season have also have to be considered, he said.
The HHSRP is being implemented at the orders of Custodian of the Two Holy Mosques King Abdullah for the implementation of safe and modern high-speed railways, especially to make transportation of Haj and Umrah pilgrims safe and easier, the minister said on an earlier occasion.
The Makkah-Jeddah-Madinah rail link is expected to carry more than 150,000 passengers daily during peak seasons.
He noted the project not only serves citizens and residents in the Kingdom, but also Muslims around the world. When completed, it will represent a quantum leap in the Kingdom's transport sector and usher in a new era of high-speed trains for passenger transport, he added.
He underlined the importance of the railway link projects being implemented by Saudi Arabia, which will have a great impact on socioeconomic development as well as improving the investment environment and competitiveness of Saudi exports.
With the awarding of the second phase, work on the project will start and be completed according to schedule.
© Arab News 2012
