Haramain rail project award 'fair and transparent'

The Haramain High-Speed Rail Project is one of the largest of its type in the world. Photo: Getty.

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Saudi’s Transport Minister Jabara Al-Seraisry says the $8.2bn contract for Phase 2 of the Haramain High Speed Rail Project (HHSRP) lining Makkah and Madinah was awarded the “total transparency and fairness”.

In a statement to state news wire SPA, Al-Seraisry said, “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.”

Five consortia bid for the work and the contract was awarded to a Saudi-Spanish consortium heading by the Al-Shoula Co. on Jan. 15. It is one of the largest projects for high-speed rail in the world and covers track laying, electrification, power supply, coms systems and rolling stock for the line.

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“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 stated

“It means that the cost of a kilometre 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.

“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.