Tuesday, Feb 16, 2010

DUBAI (Zawya Dow Jones)--Saudi Railway Organization, or SRO, said Tuesday it extended the deadline for the bid for the second stage of 450-kilometer railway that will link the holy cities of Mecca and Medina to Jeddah from Feb. 28 until the end of April.

The deadline for the Haramain rail project was extended upon the request of the bidder, SRO said in a statement posted on its Web site.

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 three million people a year and is due for completion by the end of 2012.

In October SRO prequalified five consortiums to submit bids for the second and final phase of the railway project.

Five alliances led by China Railway Construction Corp., Al Rajhi Group, Al Shoula Group, Bin Laden Group, and Al Badr Group will to submit their bids by the end of February, according to SPA.

The $1.4 billion worth of contracts will involve laying tracks, installing signals and communications, operation and maintenance.

-By Summer Said, Dow Jones Newswires; +97150 2951855; summer.said@dowjones.com

(END) Dow Jones Newswires

16-02-10 1732GMT