FINANCIAL NEWS

USD22.5b contracts awarded for Riyadh metro

29 Jul 2013

(MENAFN) Three consortiums have won USD22.5 billion contracts to design and construct a metro rail system in Riyadh, Reuters reported.

The project will include six rail lines extending 176 kilometers and carrying electric, driverless trains.

The first group, headed by US Bechtel Corp, won a USD9.45 billion contract to build two lines, the Saudi government said.

The second group, led by Spain’s Fomento de Construcciones y Contratas, won a USD7.82 billion contract for three lines, while the third group, led by Italy’s Ansaldo STS, won a USD5.21 billion order.

Design work will start immediately and construction will begin in the first quarter of 2014, the government said. The project would be completed in 2019.

The project is part of the government’s aim to raise living standards and upgrade the country’s infrastructure to help the economy diversify beyond oil, making it less vulnerable to any future plunge of global oil prices.

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