Qatar Rail awards insurance policies to consortium
Deal is one of largest risk covers related to railways ever placed
Qatar Railways Company (Qatar Rail), the company which is overseeing the construction of the much-anticipated integrated railway network, has awarded one of the largest ever single project tunneling and rail construction insurance policies to a six-member consortium of Qatari National Insurance Companies, led by Qatar Insurance Company (QIC), with additional capacity from international reinsurers and QFC registered insurers.
This is the most prestigious and the largest insurance program on infrastructure in Qatar and one of the largest risk covers related to railways ever placed in the world.
The National Insurance Consortium will provide Construction All Risks and Third Party Liability insurance to Phase 1 of Doha Metro Project.
The other five members of the consortium are Qatar General Insurance and Reinsurance Company, Al Khaleej Takaful Group, Doha Insurance Company, Qatar Islamic Insurance Company and Al Koot Insurance and Reinsurance Company. QFC-registered companies Doha Bank Assurance Company and SEIB Insurance and Reinsurance Company also participate on the program.
Engineer Abdullah Bin Abdulaziz Turki Al Subaie, managing director of Qatar Rail, said: "We, at Qatar Rail, believe that a strong public private partnership (PPP) will further strengthen the domestic economy and our model translates Qatar National Vision 2030 into achievable actions through our projects that are essentially based on PPP.
“The Doha Metro, which is being built in a phased manner, offers immense potential for private sector investments, particularly in the construction and operations and maintenance, across different development stages.”
In total a majority (80%) of the risk is retained by domestic insurance companies. The lead reinsurer is Liberty (UK), and the broker appointed by Qatar Rail is Marsh.
The 231km Doha Metro forms an integral part of Qatar's overall railway network and will rank among the most modern and advanced integrated railways network in the world. It is to be executed in twin stages with Phase 1 involving the 131km (underground 63km, elevated 48km and at grade 20km) and 48 stations. Phase 2 will see the construction of 100km (underground 37km, elevated 53km and at grade 10km) with 44 stations.