Tuesday, Apr 03, 2007
RIYADH (Zawya Dow Jones)--Saudi Arabia signed Tuesday three contracts worth 7.19 billion Saudi riyals ($1.9 billion) with consortia comprised of Saudi, Chinese, Australian and Japanese companies to build the 1,765-kilometer north-south railways project.
In a statement distributed in Riyadh, Mansour Al Maiman, secretary general of General Investment Fund said Bin Ladin Group won the first contract, which covers the section of the railway from Ras Alzoor to Alzbairah bauxite mine, stretching 576 kilometers with a value of SAR2.356 billion.
A consortium of China's Eighteenth Co. and Saudi Al-Suwaiket Co. won the second contract, which covers the section from Alzbairah to the middle of the great Nofooth, stretching 440 kilometers with a value of SAR 1.963 billion, Al Maiman added.
Japanese trading house Mitsui & Co. (MITSY), Saudi Arabian contractor Al Rashid and Australian railway contractor Barclay Mowlem have won the third contract that covers the section from the middle of the great Nofooth to Alhadeethah, Hazm Al Jalameed and Al Bsaitah, stretching 750 kilometers with a value of SAR 2.782 billion, the statement said.
The statement said the implementation of these contracts will take 42 months.
The three sections constitute railways for transport of minerals from Hazm Aljalameed and Alzbairah to Ras Alzoor and the northern parts of the railways for transport of goods and passengers from Hazm Aljalameed to Alhadeethah center.
Saudi Finance Minister and Chairman of The Board of Directors of General Investment Fund, Ibrahim bin Al Assaf, announced the start of work by Saudi railways company with capital of SAR1 billion, which will supervise the north-south railways project.
-By-Anees Al Qudaihi, Dow Jones Newswires; +966 1 2914872; anees.alqudaihi@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
03-04-07 1930GMT
