There are more live projects in Infrastructure in the ME region than anywhere else. Opportunities are rising with total expenditure that can reach 100 billion USD in roads, rails projects alone as PPP and EPC. This paper highlights some of the major projects in the region and active consortiums involved.
FIDIC 2017 Yellow and Silver in EPC and PPP Contracts
ME Roads & Railway Projects & Consortiums, Feb., 2011 Loay Ghazaleh
1. ME Roads & Railway
Projects & Consortiums
February, 2011
Loay Ghazaleh, Advisor – Ministry of Works, Bahrain
MBA 2000 (Thunderbird); B.Sc. Civil Eng 1986 (Texas A & M)
973 36 711547,
loay.ghz@gmail.com; Loayg@works.gov.bh
Skype : Loay.Ghazaleh
GCC Railway Network 2
Saudi Arabia High Speed Railway Project 2
Saudi Arabia Mass Rail Transit in Mecca 5
Abu Dhabi Mafraq - Ghweifat Highway PPP 6
UAE Union Railway 8
Qatar Doha Metro 11
Oman Railway Network 13
Kuwait Metro Rail Project 15
Kuwait Motorway Projects 17
Jordan Rail Project 18
Egypt Rod el-Farag Highway 19
Turkey Highways Privatization 21
2. GCC Railway Network
September 9, 2010 Update – the project is feasible and economically
justified
According to authorities, a feasibility study of the GCC rail network extending
from Kuwait to Muscat, connecting all six Gulf station, has found the initiative to
be “feasible and economically justified”.
The study has also concluded that a private concession for the Operation and
Maintenance (O&M) of the GCC Railway is “financially viable”.
High Speed Railway Project – Saudi Arabia
This high-speed railway is the first high speed rail program in the Middle East
and is a 320 kph railway linking the cities of Makkah, Jeddah, the new King
Abdullah Economic City and Medina, as well as the International Airport in
Jeddah and will reduce the distance between Makkah and Jeddah to half an hour
and between Jeddah and Madinah two hours.
The contract would include construction of railway tracks, installation of signal
system and telecommunications, the procurement of rolling stock and equipment,
and maintenance for the entire infrastructure for a period of 12 years.
July 5, 2010 Update - Two bidders compete for Saudi high speed railway
project
Saudi Railways Organization (SRO) has received the technical and financial
offers of Phase 2 of Haramain High Speed Rail Project (HHR).
SRO has announced that only two consortia, a French-Saudi group Al-Rajhi
Alliance and Spanish-led Al-Shoula Consortium have submitted their technical
and financial offers to Saudi Railways Organization.
Three other groups, including a partnership of Saudi Binladin Group, Deutsche
Bahn AG and Siemens AG, a Chinese consortium led by China South
Locomotive & Rolling Stock and a group including South Korea’s Hyundai
Engineering & Construction and Samsung Engineering did not bid for the project,
the SRO said
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3. President of SRO, Eng. Abdulaziz Mohammed Al-Hokail said that the experts
from SRO, PIF, Scott Wilson, and Dar Al Handasah in a joint venture with
Getinsa will verify the technical offers before opening the financial offers in
accordance with the methodology and international standards to ensure
transparency in the evaluation and to make sure that the consortium, that wins
the contract, fulfils all the technical and operational requirements.
The financial offers will be opened only after making sure that competing
Consortium has fulfilled the technical requirements by at least 80 percent as
mentioned in the request for proposals document (RFP) and in the Instructions to
Tenderers (ITT).
Consortia details:
Consortium 1
- Consortium Name: Al-Shoula Group
- Consortium Leader: Al-Shoula Group
- Track & Systems: Copasa/Imathia/Cobra /OHL/Dimetronic/INABENSA/Indra
- Rolling Stock: Talgo
- Operator & Maintainer: Renfe/Adif/Consultrans/Imathia/Ineco
- Saudi Consortium Member: Al-Shoula Group
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4. Consortium 2
- Consortium Name: Al-Rajhi Alliance
- Consortium Leader: Al-Rajhi Holding Group Arrab Contracting
- Track & Systems: Company/Alstom/Thales & Orascom
- Rolling Stock: Alstom
- Operator & Maintainer: SNCF/Al-Rajhi Holding Group/Alstom
- Saudi Consortium Member: Al-Rajhi Holding Group/Arrab Contracting Company
August 16TH 2011 UPDATE – THE Spanish consortium composed of Al-Shoula
Group received the contract to design, build and operate a high speed rail line.
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5. Mass Rail Transit in Mecca – Saudi Arabia
August 16, 2011 Update - EOIs for Mass Rail Transit project in Mecca
during 2011 Q4
AlBalad AlAmeen Company (BAC), the development arm of the Holy Makkah
Municipality, is planning to invite expressions of interest for Makkah (also known
as Mecca) Mass Rail Transit project (MMRT) in the last quarter of 2011.
BAC has a team of advisors composed by Ernst and Young, Ashurst and
Parsons Brinckerhoff. After submission of the EOIs, AlBalad AlAmeen
Company (BAC) is planning a market sounding.
AlBalad AlAmeen Company (BAC) is structuring the procurement packages for
the Stage 1 system. This initial stage will include rail infrastructure, railway
systems, rolling stock, depot and operations.
The Makkah Mass Rail Transit Stage 1 expansion will complement the 18 km Al
Mashaaer Al Mugaddassah line, opened in November 2010.
Stage 1 will include the construction of sections of Lines "B" (10 km long and 6
stations) and "C" (29 km long and 14 stations) . The other two Lines, "A" and
"D", will be constructed in future stages.
Mecca is regarded as the holiest city in Islam. More than 13 million Muslims visit
Mecca annually, including several million who perform the Hajj (pilgrimage). With
a population of 1.7 million (2008), the city is located 73 km (45 mi) inland
from Jeddah in a narrow valley at a height of 277 m (909 ft) above sea level.
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6. Mafraq - Ghweifat Highway PPP in Abu Dhabi
The Highway, which stretches 327 km from Mafraq to the border at Ghweifat,
provides the only access to the Western Region, including the industrial centre of
Ruwais and several important tourist destinations.
The project is the first transport-related public private partnership (PPP) project to
be undertaken in the GCC. It will see the highway widened to four lanes in each
direction (three in the less-trafficked portions near Ghweifat) and upgraded to
meet world's best standards in highway design, safety, communications and
services to users.
Once completed, the winning consortium will be responsible for maintaining and
operating the upgraded highway while meeting stringent performance standards
relating to safety, availability and quality for a period of 25 years.
Payment to the Consortium will be via a series of equal payments spread over 25
years. These ongoing payments will be subject to deductions for failure to meet
the prescribed performance standards and will ensure the consortium remains
accountable for the operational performance of the road over the 25 year period.
This PPP payment method differs significantly from the more traditional approach
where the contractor is paid in full as construction is completed, and has little or
no involvement or accountability for the operational performance of the road over
the long term.
August 3, 2010 Update - Preferred bidder for the Mafraq-Ghweifat highway
PPP in Abu Dhabi expected by mid September
The Department of Transport (DoT) in Abu Dhabi announced that it has received
bids from three international consortia competing for the 25 year concession to
upgrade, finance, operate and maintain the Mafraq - Ghweifat Highway.
CCCC-MTD consortium which consists of:
1- China Communications Construction Company (Lead) – China
2- MTD Capital Bhd – Malaysia
3- Ghantoot Transport – UAE
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7. IRTIBAAT consortium which consists of:
1- Macquarie Capital group Limited (Lead) – Australia
2- Abu Dhabi Commercial Bank PJSC – UAE
3- Al Jabber Transport & General Contracting LLC – UAE
4- N.V. Besix SA – Belgium
5- Mouchel Middle East Limited – UAE
6- Transfield Services International Pty Ltd – Australia
7- Odebrecht – Brazil
Mafraq Motorway Group (MMG) consortium which consists of:
1- Strabag Societas Europaea (Lead) – Austria
2- Joannou & Paraskevaides (Over Seas) Ltd – UK
3- J&P Avax S.A. – Greece
4- Saif Bin Darvish – UAE
5- Egis Projects SA – France
December 21st 2010 Update - The Abu Dhabi Department of Transport
(ADDOT) has recommended to award the $2.65 billion Mafraq-Ghweifat road
PPP to the Strabag-led consortium, Mafraq Motorway Group, as it has been first-
ranked bidder.
June 5, 2011 Update
Constructors warn Abu Dhabi of setbacks to big projects if Mafraq-Al Ghweifat
Highway scrapped.
The Abu Dhabi Department of Transport confirmed last week it was re-evaluating
plans to use a public-private partnership (PPP) to build the 327km Mafraq-to-Al
Ghweifat Highway to Saudi Arabia.
The Dh10 billion (US$2.72bn) projects, which have been in development for
three years, are considered a test case for using PPP on large-scale
infrastructure projects.
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8. UAE’s Union Railway
September 15, 2010 Update - Advisor appointed for UAE's Union Railway
Project
UBS Investment Bank has been appointed as adviser on the development of a
strategic financing plan for the construction and operation of the USD11bn Union
Railway in the United Arab Emirates (UAE).
The 1,500 kilometer transport and logistics network will connect the entire UAE
as well as provide a link to the rest of the Gulf. Union Railway Company
manages the development, construction and operation of the UAE’s national
railway.
The Union Railway covers a network of up to 1,500 km, stretching across all
seven Emirates. The railway will connect the UAE to Saudi Arabia via Ghweifat
city in the West and Oman via Al Ain in the East.
October 2nd 2010, Update
The first phase of the project will be a 270-kilometer freight rail line linking Abu
Dhabi's Shah sour gas field to Ruwais on the Persian Gulf coast, to transport
granulated sulfur for export.
Union Railway will this week open prequalification documents for the main
engineering, procurement and construction, or EPC, contract covering that route.
The company hadn't yet decided whether the railway project would be carried out
as a public-private partnership.
November 28th 2010, Update
Parsons Brinckerhoff Inc and Systra won contracts for management and
preliminary engineering consultancy work on the 40 billion-dirham ($11bn)
project.
December 6, 2010 Update - Pre-qualifications submitted for Phase I of the
UAE’s railway.
The 1,500 kilometer transport and logistics network will connect the entire UAE
as well as provide a link to the rest of the Gulf. The railway will connect the UAE
to Saudi Arabia via Ghweifat city in the West and Oman via Al Ain in the
East. Union Railway Company manages the development, construction and
operation of the UAE’s national railway.
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9. UBS Investment Bank is acting as adviser on the development of a strategic
financing plan for the construction and operation of the USD11bn Union Railway
in the United Arab Emirates (UAE). Parsons Brinckerhoff Inc and Systra won
contracts for management and preliminary engineering consultancy work on the
40 billion-dirham ($11bn) project.
Last week, Union Railway has received prequalification documents from
contractors for the first two construction contracts on the Phase I of the UAE’s
railway. The 2 contracts are an estimated AED 300 million ($82 million) enabling
works and earth moving package and an estimated AED 2 billion ($545 million)
civil and track works package.
Companies submitted prequalification documents on November 22 for the civil
and track works. The groups that submitted documents include:
1. Acciona (Spain)
2. Advanced Rail Group (local or Australia)
3. Al-Futtaim Carillion (local/UK) - Saif bin Darwish (local)
4. Al Geemi and Partners Contracting (local) Al-Arrab Contracting Company
(Saudi Arabia)
5. Al Jabber Group (local) - China Railway Construction Corporation (China)
6. Arabtec Engineering Services (local) - Salini (Italy)
7. Astaldi (Italy) - Nurol (Turkey) - Al Meraikhi (local)
8. Cebarco (Bahrain) - WCT (Malaysia)
9. Consolidated Contractors Company (CCC) (Athens based) - OHL (Spain)
10. GS Engineering and Construction (South Korea) - Laing O’Rourke (UK)
11. Naboodah Contracting (local)
12. Fujita Corporation (Japan) - Sagar Infra Rail International (Siril) (India)
13. Hochtief (Germany)
14. Hyundai (South Korea) - Ghantoot (local)
15. Ircon International (India) - Tafseer Contracting (local)
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10. 16. Larsen and Toubro (India) - Balfour Beatty (UK) - Kier Construction (UK)
17. Obayashi Corporation (Japan) - Mitsubishi Corporation (Japan)
18. Orascom (Egypt) - Implenia (Spain)
19. Samsung (South Korea) - Impregilo (Italy) - Tristar (local)
20.Saudi Binladin Group (Saudi Arabia)
21. Strabag (Austria) - Joannou and Paraskevaides (Cyprus) - China Railway
22. Construction Corporation (China)
23. Tecnimont (Italy) - Saipem (Italy) - Ascon (local) - Dodsal (India)
24. Yepi Merkezi (Turkey) - Arabian Construction Company (ACC)
(Local/Lebanon) - Aktor (Greece)
Richard Bowker CEO of Union Railway said that the winning bidder will complete
site preparation and site clearance work earthworks including cut and fill
operations at the Liwa sand dunes, the construction of utilities, access roads and
highway diversions and buildings including warehouses and facilities for railway
operations and maintenance and track work which involves the supply and
installation of ballast, sleepers, rails, switches and crossings
The first phase of the project is a 270-kilometer freight rail line linking Abu
Dhabi's Shah sour gas field to Ruwais on the Persian Gulf coast, to transport
granulated sulfur for export.
January 23rd, 2011 update - Union Railway announced it plans to call
winning tenders in March, 2011
The winning bidders will be named by mid-2011, allowing construction work to
get underway in the second half of this year.
The next two phases of the project will see the establishment of a route linking
Abu Dhabi and Dubai (Stage 1), and proposed network in the northern Emirates
(Stage 2).
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11. Doha Metro - Qatar
June 27, 2011 Update - The Doha metro system will be tendered in 1-2
months
Qatar winning the bid to host the FIFA 2022 World Cup will spur the country's
infrastructure projects market development, estimated over US$ 100 billion,
based on public-private partnerships (PPPs) model.
One of the most important projects that are going to be developed in Qatar is
Doha's metro system.
The Big Project Me quotes Ghanim Hassan Ali Al Ibrahim, group director for
projects at Qatar Railways Co., speaking about the future bid of the metro of
Doha:
Tenders for the first phase of the US $25 billion Doha Metro system are due to
be launched in the next “one to two months”.
He continues explaining how they have planned everything out so that
construction is done by 2022.
All contracts, split into 19 separate packages and worth at least $1 billion each,
will be awarded sometime in 2012. Al Ibrahim says the final package must be
awarded by the end of 2012 to allow enough time for construction; which is
estimated to take eight years, with a further year scheduled for testing the
completed system.
The Doha metro website values the project at $3 billion, something very different
from the 25$ billion. A public-private partnership (PPP) is being considered as a
financing option, they say.
The project is being managed by QRDC, a 51:49 joint venture of state-owned
property development group Qatari Diar and Deutsche Bahn International.
The metro is part of a $42.9 billion railway project initiated by the state, which
also incorporates the national rail network, freight network and a proposed direct
link via the Friendship Bridge to Bahrain, once completed. The projects are
expected to create 7000 jobs.
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12. July 31, 2011 Update - Expression of interest requested for Doha Metro
Today, Eng. Saad Ahmed Al Muhannadi, Chief Executive Officer of the Qatar
Railways Company announced the launch of the project:
“This invitation is a major opportunity for local contracting companies to join in
consortia with large international contractors to design and build six urgent
construction packages that include 22 km of underground tunnels (and) 15
underground stations in the first stage,”
Qatar Railways is inviting local and international players:
Qatar Railways Company (QRail) extended an invitation to local, regional and
international companies to submit an 'expression of interest' to participate in the
design and construction of infrastructure and civil works in the Qatar Integrated
Railways Project (QIRP) Doha Metro
The announcement follows a couple of industry events that took place May and
July and attracted more than 700 representatives from leading companies.
Qatar winning the bid to host the FIFA 2022 World Cup will spur the country's
infrastructure projects market development, estimated over US$ 100 billion.
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13. Railway Network in Oman
September 9, 2010 Update - Consultants sought for railway network in
Oman
A joint venture team of experts representing Systra Consulting of France and the
National Engineering Office (NEO) of the Sultanate has already completed a
study of the design requirements for the National Railway project.
More than 30 engineering consultants have already registered to prequalify for a
contract to provide engineering design and supervision consultancy services for
the project.
The Supreme Committee for Town Planning (SCTP) is the lead agency
responsible for the development and implementation of the country’s national rail
transportation system.
A similar number of firms have also sought to prequalify for a contract to provide
project management services.
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14. Prequalification offers for either tender are currently under evaluation. A shortlist
of prequalified bidders is likely to be announced within a month, it is learnt.
One or more engineering consultants will be appointed to undertake the design
of the different sections of the rail network, with an award expected to be
announced early next year.
Oman’s National Railway network will comprise a double track, standard-gauge
(1,435mm) system with provision made for the introduction of high-speed trains,
with speeds of up to 350 kilometers per hour (kph), in the future. Initially,
however, passenger trains will be operated at speeds of 200 kph, while freight
trains will run at speeds ranging from 80 to 120 kph.
The rail system will form part of a planned Gulf Cooperation Council (GCC) rail
network connecting Oman with the UAE and other Gulf countries.
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15. Kuwait PPP Metro Rail Project
August 10, 2010 Update - Advisors chosen for Kuwait PPP metro rail
project. Ernst & Young, Ashurst and Atkins
A UK team will evaluate the feasibility studies and the design of the $7bn metro.
UK-based team led by Ernst & Young has won the advisory deal for the $7bn
Kuwait metro project. The group also includes Atkins as technical adviser and
Ashurst as legal adviser. The group is expected to sign the contract once the
state’s Audit Bureau gives its approval.
The client, the Partnerships Technical Bureau (PTB) received proposals from
consultants on 27 May for the advisory deal.
In November 2009, the PTB drew up a shortlist from an original list of 45
consultants, which expressed interest in the metro advisory contract.
Ernst & Young will now act as the transaction adviser, helping the PTB structure,
procure and negotiate the deal. This includes validating previous feasibility
studies, carrying out due diligence on the project and overseeing the tender
process.
The group will also evaluate the design of the metro, which was carried out by
Kuwait Overland Transport Union and Kuwait Municipality.
Kuwait Metro details
The Kuwait Metro Rail Project is operated under the direction of Kuwait's Ministry
of Communications and Spanish training company Ingenieria y Consultoria de
Transporte (Ineco), which provided a master plan for the system.
The Kuwait Metro Rail Project is a 171km-long inner city transport running across
Kuwait City. It is the first metro rail project and the second private-public
partnership project launched by the Government of Kuwait since 2009.
The Kuwait Metro Rail Project was created to help ease the country's traffic
congestion problems. Although Kuwait has a well-maintained, modern and
extensive road network, it lacks a railway system, which has resulted in an
increase in fatal accidents. There has been an increase in the number of vehicles
due to cheap petrol prices.
The number of expatriates in the country has grown, which has contributed to the
city's traffic problems. According to 2007 estimates, Kuwait had a population of
ME Roads & Railway Projects & Consortiums Page 15
16. around 3.5 million, of which two million are non-nationals. The state has a
migration rate of 16.01, which is the third highest in the world.
Vehicles speeding at 120km per hour, lax enforcement of traffic regulation and
high density traffic (one vehicle per person) have also lead to frequent and fatal
accidents on Kuwaiti roads.
Lines and routes:
- Line 1 is 23.7km long and will connect Kuwait's southern metropolitan area with
the centre of the city and the main university. This line will feature 19 stations. In
the future this line will be extended by 57.3km.
- Line 2 will be 21km long, connecting the main business district with the
residential areas of Salmiya and Hawally, and will feature 27 stations. There are
plans for this line to be extended by 16.4km.
- Line 3 will be 24km long and will have 15 stations.
- Line 4 will be 22.7km long and will connect the city centre with Kuwait
International Airport. It will feature 15 stations including a few at residential areas
and the Shuwaikh Industrial Zone.
A private developer will design, build, finance, operate and maintain the metro
network. The developer will own 40 per cent of the project company, the
government will own 10 per cent and the state will sell the remaining 50 per cent
in an initial public offering (IPO).
November 7th, 2010 Update
Ernst & Young has announced the start of its transaction advisory work on the
landmark Kuwait Metro project
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17. Kuwait Motorway Projects
01 September 2011 Update - Kuwait to spend KD1.7bn ($6bn) on building
550km of motorway projects
Kuwait's Ministry of Public Works, which is now designing the motorways, will
launch the tenders for their construction over the next three and a half years,
according to Bloomberg.
In October 2010, Kuwait awarded a contract to a group led by Hyundai
Engineering & Construction to design, build, operate and maintain the Jabber Al-
Ahmad Bridge at a cost of KD738.8m.
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18. Jordan PPP Rail Project
September 6, 2010 Update - Feasibility report by BNP Paribas ready
Following the completion of a feasibility study by BNP Paribas, Minister of
Transport Alaa Batayneh hopes to call tenders this year for development of three
routes totaling 1080 km under a PPP concession. The government began land
acquisition last year, and construction is expected to begin in 2011 with the first
lines opening in 2014-15.
There are high hopes that Jordan will be an important connection point between
several Middle east countries:
The ministry's long-term aim is for Jordan to become a transit point on a rail
corridor between Europe, the Middle East and the Gulf. Expected to cost 2·4bn
dinars, the new network would join existing lines in Iraq and Syria and the North-
South Railway in Saudi Arabia, providing connections to the proposed lines
linking the Gulf Co-operation Council countries.
The PPP model to structure the project would be Build-Transfer-Operate
(BTO).The project would be funded by a state-owned company, which could
borrow money more cheaply than the private sector. The private partner would
build the network and then hand it over to the government, but would continue to
operate the railway and pay fees to use the infrastructure.
Traffic is expected to include oil and minerals from Saudi Arabia and cement
from Jordan to Iraq. According to the consultants, annual revenues would grow
from 229m dinars in 2015 to 365m in 2030 and over 1·4bn in 2050. Batayneh
says passenger services are 'not feasible at this stage' but may become an
option in the future - the North-South Railway project includes proposals for a
Riyadh - Amman train. The project would be divided in 3 separate stages:
First stage - According to the ministry, the first line would replace the near-
moribund 1050 mm gauge Hedjaz Jordan Railway between the Syrian border
and Zarqa and connect to the Saudi border.
Second stage - The second stage would add lines to Aqaba on the Red Sea,
replacing the current narrow-gauge phosphate line, and from Mafraq to Irbid.
Third stage - The third segment would run east to the Iraqi border, but no
timescale has been set for this. Batayneh says the Iraqi government's current
priority is to restore its existing railway and establish a link with Iran.
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19. Rod el-Farag Highway in Egypt
August 10, 2010 Update - Six international consortia competing for the Rod
El Farag PPP highway in Egypt
There are six 6 consortia competing for the implementation of Rod El-Farag's
highway.
The Rod El Farag Highway Project is one of the key PPP Pilot Projects whereby
the MHUUD (The Ministry of Housing, Utilities and Urban development) with the
Ministry of Transport and by the technical assistance of the PPP Central Unit
invited the private sector participation through a competitive bidding process to
enter into PPPs for the construction, operation and maintenance of Rod El Farag
Access road.
The project will connect the existing ring road around Cairo with Cairo -
Alexandria highway with total length of 34 km.
The local source states the following: (I have included the companies that appear
in the Qualification document)
Minister of Housing, Utilities and Urban Development Ahmed El-Maghrabi said
that 6 Egyptian-global alliances of leading construction companies applied for the
financing and implementation of the highway of Rod El Farag, pointing out that
there are international companies from Austria (Strabag AG Infrastructure
Development and Porr Solutions), France (Egis Projects), Malaysia (Projek
Lintasan Kota Holdings SDN BHD and Prolinatas), Portugal (Soares da Costa
Concessões and Banco Efisa- a subsidiary of BPN - Banco Portugues De
Negocios), China, Korea (Samsung C&T Corporation) and Greece (GEK
TERNA S.A.), in addition to large companies Egyptian Contracting.
The Invitation for Prequalification was issued on April 13th, 2010 and deadline for
submission of the PPP road tender was postponed to August 1st , 2010. On the
website of the Egyptian PPP Unit we can find a list with all the companies that
have requested qualification for this PPP road tender.
In this document we are missing Chinese developers and we also can see how
there would be two Spanish developers immerse in the tender (Acciona and
OHL).
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20. El-Maghrabi said the ministry will start the evaluation of the documents submitted
by each company and then announcing the short list of companies accepted
within 15 days, after that comes the distribution of the bidding document, pointing
out that this project is one of the major development projects, implemented by
the Ministry of Housing to develop western entrances of Greater Cairo, solving
traffic problems on the roads.
February 2, 2011 Update - New dates for the Rod el Farag highway tender
There are new dates for the Rod el Farag highway tender. The Invitation for
Prequalification for the project was issued on April 13th, 2010 and deadline for
submission of the PPP road tender was postponed to August 1st , 2010.
Five consortia have entered the bidding process according to World
Highways:
• Orascom has teamed up with French firm Egis and Belgian-based Besix
• Austrian contractor Strabag is in partnership with local firm International
Group for Investment and EFG Hermes
• The Greek contractor Gek Terna has teamed up with Austrian company
Porr Solutions and local firm Hassam Allam
• China Communication and Portuguese Soares da Costa
• South Korean contractor GS Engineering
The five prequalified consortiums are asked to submit their bids by August
2011. The preferred bidder will be chosen in late 2011.
This is a very important project for Egypt, probably the first PPP project in
transportation.
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21. Highways Privatization in Turkey
The Turkish government is planning to invest $350bn in the transportation and
communications sectors by 2023, according to balkans.com.
$6.5-Billion Mega Highway Project - September 27, 2010.
The Turkish government signed a build-operate-transfer deal with a consortium
of six construction companies to carry out country's largest-ever highway project
which will link Turkey's largest city Istanbul to third-largest city of Izmir. The
highway will reduce travel time between Istanbul and Izmir from 6 hours 30
minutes to about 3 hours.
Under this $6.5-billion mega project, world's second-longest suspension bridge
will be built over the Gulf of Izmit. The bridge will have a length of 3,000 meters.
Government plans to break ground for the project in two months. It will create at
least 10,000 jobs and be completed in seven years, Turkey's Transportation
Minister Binali Yildirim told the signing ceremony in Ankara.
The consortium - consisting of Turkish construction firms Nurol, Ozaltin, Makyol,
Yuksel, Gokcay and Italy-based Astaldi-- will transfer the highway after 22 years
and 4 months, including construction time.
"The project is the largest to be carried out at one time under build-operate-
transfer model in Turkey's history," Yildirim said.
"According to our calculations, the project will lead to a time and fuel savings of
$870 million a year, which is a presumptive return on investment in 10 or 11
years," Yildirim added.
The consortium led by Astaldi was awarded the construction of a highway
linking Istanbul and Izmir ($6.5 billion).
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22. 24 highway projects (BOT) - November 27, 2010
This week, we learned the Turkish General Directorate of Highways (KGM) is
preparing to carry out 24 highway projects across Turkey by making use of the
build-operate-transfer (BOT) model.
According to an Anatolia news agency correspondent, the total length of
highways that will be built using the BOT model will be 9,380 kilometers. It is
estimated that the projected will cost around $83 billion, including the
nationalization of some properties near the planned highway
Below are the projects expected to be constructed through BOT model:
1-Gebze-Orhangazi-Izmir motorway (421 kilometers),
2-Kuzey Marmara motorway (414 kilometers),
3-Ankara-Nigde motorway (342 kilometers),
4-Ankara-Samsun motorway
a-Ankara-Kırıkkale Delice section (112 kilometers),
b-Delice-Samsun section (320 kilometers)
5-Aydın-Denizli-Burdur motorway
a-Aydın-Denizli section (175 kilometers),
b-Denizli-Burdur section (155 kilometers),
6-Kınalı-Tekirdag-Canakkale-Balıkesir motorway (370 kilometers),
7-Sabuncubeli Tuneli (4 kilometers),
8-Ankara-Izmir motorway (535 kilometers),
9-Afyonkarahisar-Antalya-Alanya motorway (490 kilometers),
10-Sivrihisar-Bursa motorway (202 kilometers),
11-Sanlıurfa-Habur Motorway including Diyarbakır linking road (445 kilometers),
ME Roads & Railway Projects & Consortiums Page 22
23. 12-Gerede-Merzifon-Gurbulak motorway
a-Gerede-Merzifon section (357 kilometers),
b-Merzifon-Gurbulak section (908 kilometers),
13-Bozuyuk-Afyonkarahisar motorway (85 kilometers),
14-Afyonkarahisar-Nigde motorway (425 kilometers),
15-Duzce-Zonguldak motorway (90 kilometers),
16-Alanya-Mersin motorway (250 kilometers),
17-Delice-Sivas-Refahiye motorway (540 kilometers),
18-Nevşehir-Diyarbakır motorway (650 kilometers),
19-Diyarbakır-Gurbulak motorway (460 kilometers),
20-Sivas-Malatya motorway (230 kilometers),
21-Trabzon-Malatya motorway (540 kilometers),
22-Sanlıurfa-Akçakale motorway (50 kilometers),
23-Rize-Diyarbakır motorway (560 kilometers),
24-Pasinler-Turkgozu motorway (250 kilometers)
9 Highways & 2 Bridge Privatizations - 01 Sep. 2011
The Privatization Administration (OIB) of Turkey is planning to privatize nine
highways and two bridge projects, which include Bosporus Bridge and Fatih
Sultan Mehmet Bridge. OIB is planning to award long-term concession to private
investors for 25 years. The minimum bid bond for the concession has been fixed
at $200m as the OIB is looking for local and foreign investors to bid for the
concession.
The Turkish Privatization Administration is looking for local and foreign investors
as well as held talks with 15 foreign investors regarding the concession. The
foreign investors who are expected to participate in the bid include Italian
Atlantia, Egis Projects as well as Spanish Abertis and Portuguese Brisa.
ME Roads & Railway Projects & Consortiums Page 23