FINANCIAL NEWS

Saudi Arabia, Spain ink 2nd phase railway contract

15 Jan 2012

(MENAFN) Saudi Arabia signed a USD8.2 billion deal with Spain to build a high-speed railway connecting Makkah and Madinah, with the port city of Jeddah, Reuters reported.

Saudi Finance Minister Ibrahim Alassaf and Transportation Minister Jobarah al-Suraisry signed the agreement with Spanish Foreign Minister Jose Manuel Garcia-Margallo and Public Works Minister Ana Pastor.

Al-Shoula consortium, which includes Spanish companies including ADIF, RENFE and Talgo, won the contract for the second phase of the railway project last year after a long competition with a French-led group.

The contract includes track laying, electrification, operations and maintenance, and is aimed at improving transport connections during the annual haj pilgrimage, in which millions flood into the holy cities of Mekka and Madinah.

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