ME Roads & Railway Projects & Consortiums, Feb., 2011 Loay Ghazaleh

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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.

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ME Roads & Railway Projects & Consortiums, Feb., 2011 Loay Ghazaleh

  1. 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.GhazalehGCC Railway Network 2Saudi Arabia High Speed Railway Project 2Saudi Arabia Mass Rail Transit in Mecca 5Abu Dhabi Mafraq - Ghweifat Highway PPP 6UAE Union Railway 8Qatar Doha Metro 11Oman Railway Network 13Kuwait Metro Rail Project 15Kuwait Motorway Projects 17Jordan Rail Project 18Egypt Rod el-Farag Highway 19Turkey Highways Privatization 21
  2. 2. GCC Railway NetworkSeptember 9, 2010 Update – the project is feasible and economicallyjustifiedAccording to authorities, a feasibility study of the GCC rail network extendingfrom Kuwait to Muscat, connecting all six Gulf station, has found the initiative tobe “feasible and economically justified”.The study has also concluded that a private concession for the Operation andMaintenance (O&M) of the GCC Railway is “financially viable”.High Speed Railway Project – Saudi ArabiaThis high-speed railway is the first high speed rail program in the Middle Eastand is a 320 kph railway linking the cities of Makkah, Jeddah, the new KingAbdullah Economic City and Medina, as well as the International Airport inJeddah and will reduce the distance between Makkah and Jeddah to half an hourand between Jeddah and Madinah two hours.The contract would include construction of railway tracks, installation of signalsystem 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 railwayprojectSaudi Railways Organization (SRO) has received the technical and financialoffers of Phase 2 of Haramain High Speed Rail Project (HHR).SRO has announced that only two consortia, a French-Saudi group Al-RajhiAlliance and Spanish-led Al-Shoula Consortium have submitted their technicaland financial offers to Saudi Railways Organization.Three other groups, including a partnership of Saudi Binladin Group, DeutscheBahn AG and Siemens AG, a Chinese consortium led by China SouthLocomotive & Rolling Stock and a group including South Korea’s HyundaiEngineering & Construction and Samsung Engineering did not bid for the project,the SRO saidME Roads & Railway Projects & Consortiums Page 2
  3. 3. President of SRO, Eng. Abdulaziz Mohammed Al-Hokail said that the expertsfrom SRO, PIF, Scott Wilson, and Dar Al Handasah in a joint venture withGetinsa will verify the technical offers before opening the financial offers inaccordance with the methodology and international standards to ensuretransparency in the evaluation and to make sure that the consortium, that winsthe contract, fulfils all the technical and operational requirements.The financial offers will be opened only after making sure that competingConsortium has fulfilled the technical requirements by at least 80 percent asmentioned in the request for proposals document (RFP) and in the Instructions toTenderers (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 GroupME Roads & Railway Projects & Consortiums Page 3
  4. 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 CompanyAugust 16TH 2011 UPDATE – THE Spanish consortium composed of Al-ShoulaGroup received the contract to design, build and operate a high speed rail line.ME Roads & Railway Projects & Consortiums Page 4
  5. 5. Mass Rail Transit in Mecca – Saudi ArabiaAugust 16, 2011 Update - EOIs for Mass Rail Transit project in Meccaduring 2011 Q4AlBalad AlAmeen Company (BAC), the development arm of the Holy MakkahMunicipality, is planning to invite expressions of interest for Makkah (also knownas Mecca) Mass Rail Transit project (MMRT) in the last quarter of 2011.BAC has a team of advisors composed by Ernst and Young, Ashurst andParsons Brinckerhoff. After submission of the EOIs, AlBalad AlAmeenCompany (BAC) is planning a market sounding.AlBalad AlAmeen Company (BAC) is structuring the procurement packages forthe Stage 1 system. This initial stage will include rail infrastructure, railwaysystems, rolling stock, depot and operations.The Makkah Mass Rail Transit Stage 1 expansion will complement the 18 km AlMashaaer Al Mugaddassah line, opened in November 2010.Stage 1 will include the construction of sections of Lines "B" (10 km long and 6stations) 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 visitMecca annually, including several million who perform the Hajj (pilgrimage). Witha population of 1.7 million (2008), the city is located 73 km (45 mi) inlandfrom Jeddah in a narrow valley at a height of 277 m (909 ft) above sea level.ME Roads & Railway Projects & Consortiums Page 5
  6. 6. Mafraq - Ghweifat Highway PPP in Abu DhabiThe Highway, which stretches 327 km from Mafraq to the border at Ghweifat,provides the only access to the Western Region, including the industrial centre ofRuwais and several important tourist destinations.The project is the first transport-related public private partnership (PPP) project tobe undertaken in the GCC. It will see the highway widened to four lanes in eachdirection (three in the less-trafficked portions near Ghweifat) and upgraded tomeet worlds best standards in highway design, safety, communications andservices to users.Once completed, the winning consortium will be responsible for maintaining andoperating the upgraded highway while meeting stringent performance standardsrelating 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 25years. These ongoing payments will be subject to deductions for failure to meetthe prescribed performance standards and will ensure the consortium remainsaccountable for the operational performance of the road over the 25 year period.This PPP payment method differs significantly from the more traditional approachwhere the contractor is paid in full as construction is completed, and has little orno involvement or accountability for the operational performance of the road overthe long term.August 3, 2010 Update - Preferred bidder for the Mafraq-Ghweifat highwayPPP in Abu Dhabi expected by mid SeptemberThe Department of Transport (DoT) in Abu Dhabi announced that it has receivedbids from three international consortia competing for the 25 year concession toupgrade, finance, operate and maintain the Mafraq - Ghweifat Highway.CCCC-MTD consortium which consists of:1- China Communications Construction Company (Lead) – China2- MTD Capital Bhd – Malaysia3- Ghantoot Transport – UAEME Roads & Railway Projects & Consortiums Page 6
  7. 7. IRTIBAAT consortium which consists of:1- Macquarie Capital group Limited (Lead) – Australia2- Abu Dhabi Commercial Bank PJSC – UAE3- Al Jabber Transport & General Contracting LLC – UAE4- N.V. Besix SA – Belgium5- Mouchel Middle East Limited – UAE6- Transfield Services International Pty Ltd – Australia7- Odebrecht – BrazilMafraq Motorway Group (MMG) consortium which consists of:1- Strabag Societas Europaea (Lead) – Austria2- Joannou & Paraskevaides (Over Seas) Ltd – UK3- J&P Avax S.A. – Greece4- Saif Bin Darvish – UAE5- Egis Projects SA – FranceDecember 21st 2010 Update - The Abu Dhabi Department of Transport(ADDOT) has recommended to award the $2.65 billion Mafraq-Ghweifat roadPPP to the Strabag-led consortium, Mafraq Motorway Group, as it has been first-ranked bidder.June 5, 2011 UpdateConstructors warn Abu Dhabi of setbacks to big projects if Mafraq-Al GhweifatHighway scrapped.The Abu Dhabi Department of Transport confirmed last week it was re-evaluatingplans to use a public-private partnership (PPP) to build the 327km Mafraq-to-AlGhweifat Highway to Saudi Arabia.The Dh10 billion (US$2.72bn) projects, which have been in development forthree years, are considered a test case for using PPP on large-scaleinfrastructure projects.ME Roads & Railway Projects & Consortiums Page 7
  8. 8. UAE’s Union RailwaySeptember 15, 2010 Update - Advisor appointed for UAEs Union RailwayProjectUBS Investment Bank has been appointed as adviser on the development of astrategic financing plan for the construction and operation of the USD11bn UnionRailway in the United Arab Emirates (UAE).The 1,500 kilometer transport and logistics network will connect the entire UAEas well as provide a link to the rest of the Gulf. Union Railway Companymanages the development, construction and operation of the UAE’s nationalrailway.The Union Railway covers a network of up to 1,500 km, stretching across allseven Emirates. The railway will connect the UAE to Saudi Arabia via Ghweifatcity in the West and Oman via Al Ain in the East.October 2nd 2010, UpdateThe first phase of the project will be a 270-kilometer freight rail line linking AbuDhabis Shah sour gas field to Ruwais on the Persian Gulf coast, to transportgranulated sulfur for export.Union Railway will this week open prequalification documents for the mainengineering, procurement and construction, or EPC, contract covering that route.The company hadnt yet decided whether the railway project would be carried outas a public-private partnership.November 28th 2010, UpdateParsons Brinckerhoff Inc and Systra won contracts for management andpreliminary engineering consultancy work on the 40 billion-dirham ($11bn)project.December 6, 2010 Update - Pre-qualifications submitted for Phase I of theUAE’s railway.The 1,500 kilometer transport and logistics network will connect the entire UAEas well as provide a link to the rest of the Gulf. The railway will connect the UAEto Saudi Arabia via Ghweifat city in the West and Oman via Al Ain in theEast. Union Railway Company manages the development, construction andoperation of the UAE’s national railway.ME Roads & Railway Projects & Consortiums Page 8
  9. 9. UBS Investment Bank is acting as adviser on the development of a strategicfinancing plan for the construction and operation of the USD11bn Union Railwayin the United Arab Emirates (UAE). Parsons Brinckerhoff Inc and Systra woncontracts for management and preliminary engineering consultancy work on the40 billion-dirham ($11bn) project.Last week, Union Railway has received prequalification documents fromcontractors for the first two construction contracts on the Phase I of the UAE’srailway. The 2 contracts are an estimated AED 300 million ($82 million) enablingworks 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 civiland 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)ME Roads & Railway Projects & Consortiums Page 9
  10. 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 Railway22. 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 completesite preparation and site clearance work earthworks including cut and filloperations at the Liwa sand dunes, the construction of utilities, access roads andhighway diversions and buildings including warehouses and facilities for railwayoperations and maintenance and track work which involves the supply andinstallation of ballast, sleepers, rails, switches and crossingsThe first phase of the project is a 270-kilometer freight rail line linking AbuDhabis Shah sour gas field to Ruwais on the Persian Gulf coast, to transportgranulated sulfur for export.January 23rd, 2011 update - Union Railway announced it plans to callwinning tenders in March, 2011The winning bidders will be named by mid-2011, allowing construction work toget underway in the second half of this year.The next two phases of the project will see the establishment of a route linkingAbu Dhabi and Dubai (Stage 1), and proposed network in the northern Emirates(Stage 2).ME Roads & Railway Projects & Consortiums Page 10
  11. 11. Doha Metro - QatarJune 27, 2011 Update - The Doha metro system will be tendered in 1-2monthsQatar winning the bid to host the FIFA 2022 World Cup will spur the countrysinfrastructure 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 isDohas metro system.The Big Project Me quotes Ghanim Hassan Ali Al Ibrahim, group director forprojects at Qatar Railways Co., speaking about the future bid of the metro ofDoha:Tenders for the first phase of the US $25 billion Doha Metro system are due tobe launched in the next “one to two months”.He continues explaining how they have planned everything out so thatconstruction 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 beawarded by the end of 2012 to allow enough time for construction; which isestimated to take eight years, with a further year scheduled for testing thecompleted system.The Doha metro website values the project at $3 billion, something very differentfrom the 25$ billion. A public-private partnership (PPP) is being considered as afinancing option, they say.The project is being managed by QRDC, a 51:49 joint venture of state-ownedproperty development group Qatari Diar and Deutsche Bahn International.The metro is part of a $42.9 billion railway project initiated by the state, whichalso incorporates the national rail network, freight network and a proposed directlink via the Friendship Bridge to Bahrain, once completed. The projects areexpected to create 7000 jobs.ME Roads & Railway Projects & Consortiums Page 11
  12. 12. July 31, 2011 Update - Expression of interest requested for Doha MetroToday, Eng. Saad Ahmed Al Muhannadi, Chief Executive Officer of the QatarRailways Company announced the launch of the project:“This invitation is a major opportunity for local contracting companies to join inconsortia with large international contractors to design and build six urgentconstruction packages that include 22 km of underground tunnels (and) 15underground stations in the first stage,”Qatar Railways is inviting local and international players:Qatar Railways Company (QRail) extended an invitation to local, regional andinternational companies to submit an expression of interest to participate in thedesign and construction of infrastructure and civil works in the Qatar IntegratedRailways Project (QIRP) Doha MetroThe announcement follows a couple of industry events that took place May andJuly and attracted more than 700 representatives from leading companies.Qatar winning the bid to host the FIFA 2022 World Cup will spur the countrysinfrastructure projects market development, estimated over US$ 100 billion.ME Roads & Railway Projects & Consortiums Page 12
  13. 13. Railway Network in OmanSeptember 9, 2010 Update - Consultants sought for railway network inOmanA joint venture team of experts representing Systra Consulting of France and theNational Engineering Office (NEO) of the Sultanate has already completed astudy of the design requirements for the National Railway project.More than 30 engineering consultants have already registered to prequalify for acontract to provide engineering design and supervision consultancy services forthe project.The Supreme Committee for Town Planning (SCTP) is the lead agencyresponsible for the development and implementation of the country’s national railtransportation system.A similar number of firms have also sought to prequalify for a contract to provideproject management services.ME Roads & Railway Projects & Consortiums Page 13
  14. 14. Prequalification offers for either tender are currently under evaluation. A shortlistof prequalified bidders is likely to be announced within a month, it is learnt.One or more engineering consultants will be appointed to undertake the designof the different sections of the rail network, with an award expected to beannounced 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 freighttrains will run at speeds ranging from 80 to 120 kph.The rail system will form part of a planned Gulf Cooperation Council (GCC) railnetwork connecting Oman with the UAE and other Gulf countries.ME Roads & Railway Projects & Consortiums Page 14
  15. 15. Kuwait PPP Metro Rail ProjectAugust 10, 2010 Update - Advisors chosen for Kuwait PPP metro railproject. Ernst & Young, Ashurst and AtkinsA 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 $7bnKuwait metro project. The group also includes Atkins as technical adviser andAshurst as legal adviser. The group is expected to sign the contract once thestate’s Audit Bureau gives its approval.The client, the Partnerships Technical Bureau (PTB) received proposals fromconsultants on 27 May for the advisory deal.In November 2009, the PTB drew up a shortlist from an original list of 45consultants, 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 feasibilitystudies, carrying out due diligence on the project and overseeing the tenderprocess.The group will also evaluate the design of the metro, which was carried out byKuwait Overland Transport Union and Kuwait Municipality.Kuwait Metro detailsThe Kuwait Metro Rail Project is operated under the direction of Kuwaits Ministryof Communications and Spanish training company Ingenieria y Consultoria deTransporte (Ineco), which provided a master plan for the system.The Kuwait Metro Rail Project is a 171km-long inner city transport running acrossKuwait City. It is the first metro rail project and the second private-publicpartnership project launched by the Government of Kuwait since 2009.The Kuwait Metro Rail Project was created to help ease the countrys trafficcongestion problems. Although Kuwait has a well-maintained, modern andextensive road network, it lacks a railway system, which has resulted in anincrease in fatal accidents. There has been an increase in the number of vehiclesdue to cheap petrol prices.The number of expatriates in the country has grown, which has contributed to thecitys traffic problems. According to 2007 estimates, Kuwait had a population ofME Roads & Railway Projects & Consortiums Page 15
  16. 16. around 3.5 million, of which two million are non-nationals. The state has amigration rate of 16.01, which is the third highest in the world.Vehicles speeding at 120km per hour, lax enforcement of traffic regulation andhigh density traffic (one vehicle per person) have also lead to frequent and fatalaccidents on Kuwaiti roads.Lines and routes:- Line 1 is 23.7km long and will connect Kuwaits southern metropolitan area withthe centre of the city and the main university. This line will feature 19 stations. Inthe future this line will be extended by 57.3km.- Line 2 will be 21km long, connecting the main business district with theresidential areas of Salmiya and Hawally, and will feature 27 stations. There areplans 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 KuwaitInternational Airport. It will feature 15 stations including a few at residential areasand the Shuwaikh Industrial Zone.A private developer will design, build, finance, operate and maintain the metronetwork. The developer will own 40 per cent of the project company, thegovernment will own 10 per cent and the state will sell the remaining 50 per centin an initial public offering (IPO).November 7th, 2010 UpdateErnst & Young has announced the start of its transaction advisory work on thelandmark Kuwait Metro projectME Roads & Railway Projects & Consortiums Page 16
  17. 17. Kuwait Motorway Projects01 September 2011 Update - Kuwait to spend KD1.7bn ($6bn) on building550km of motorway projectsKuwaits Ministry of Public Works, which is now designing the motorways, willlaunch 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 HyundaiEngineering & Construction to design, build, operate and maintain the Jabber Al-Ahmad Bridge at a cost of KD738.8m.ME Roads & Railway Projects & Consortiums Page 17
  18. 18. Jordan PPP Rail ProjectSeptember 6, 2010 Update - Feasibility report by BNP Paribas readyFollowing the completion of a feasibility study by BNP Paribas, Minister ofTransport Alaa Batayneh hopes to call tenders this year for development of threeroutes totaling 1080 km under a PPP concession. The government began landacquisition last year, and construction is expected to begin in 2011 with the firstlines opening in 2014-15.There are high hopes that Jordan will be an important connection point betweenseveral Middle east countries:The ministrys long-term aim is for Jordan to become a transit point on a railcorridor between Europe, the Middle East and the Gulf. Expected to cost 2·4bndinars, the new network would join existing lines in Iraq and Syria and the North-South Railway in Saudi Arabia, providing connections to the proposed lineslinking 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 couldborrow money more cheaply than the private sector. The private partner wouldbuild the network and then hand it over to the government, but would continue tooperate the railway and pay fees to use the infrastructure.Traffic is expected to include oil and minerals from Saudi Arabia and cementfrom Jordan to Iraq. According to the consultants, annual revenues would growfrom 229m dinars in 2015 to 365m in 2030 and over 1·4bn in 2050. Bataynehsays passenger services are not feasible at this stage but may become anoption in the future - the North-South Railway project includes proposals for aRiyadh - 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 borderand 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 notimescale has been set for this. Batayneh says the Iraqi governments currentpriority is to restore its existing railway and establish a link with Iran.ME Roads & Railway Projects & Consortiums Page 18
  19. 19. Rod el-Farag Highway in EgyptAugust 10, 2010 Update - Six international consortia competing for the RodEl Farag PPP highway in EgyptThere are six 6 consortia competing for the implementation of Rod El-Faragshighway.The Rod El Farag Highway Project is one of the key PPP Pilot Projects wherebythe MHUUD (The Ministry of Housing, Utilities and Urban development) with theMinistry of Transport and by the technical assistance of the PPP Central Unitinvited the private sector participation through a competitive bidding process toenter into PPPs for the construction, operation and maintenance of Rod El FaragAccess 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 appearin the Qualification document)Minister of Housing, Utilities and Urban Development Ahmed El-Maghrabi saidthat 6 Egyptian-global alliances of leading construction companies applied for thefinancing and implementation of the highway of Rod El Farag, pointing out thatthere are international companies from Austria (Strabag AG InfrastructureDevelopment and Porr Solutions), France (Egis Projects), Malaysia (ProjekLintasan Kota Holdings SDN BHD and Prolinatas), Portugal (Soares da CostaConcessões and Banco Efisa- a subsidiary of BPN - Banco Portugues DeNegocios), China, Korea (Samsung C&T Corporation) and Greece (GEKTERNA S.A.), in addition to large companies Egyptian Contracting.The Invitation for Prequalification was issued on April 13th, 2010 and deadline forsubmission of the PPP road tender was postponed to August 1st , 2010. On thewebsite of the Egyptian PPP Unit we can find a list with all the companies thathave requested qualification for this PPP road tender.In this document we are missing Chinese developers and we also can see howthere would be two Spanish developers immerse in the tender (Acciona andOHL).ME Roads & Railway Projects & Consortiums Page 19
  20. 20. El-Maghrabi said the ministry will start the evaluation of the documents submittedby each company and then announcing the short list of companies acceptedwithin 15 days, after that comes the distribution of the bidding document, pointingout that this project is one of the major development projects, implemented bythe Ministry of Housing to develop western entrances of Greater Cairo, solvingtraffic problems on the roads.February 2, 2011 Update - New dates for the Rod el Farag highway tenderThere are new dates for the Rod el Farag highway tender. The Invitation forPrequalification for the project was issued on April 13th, 2010 and deadline forsubmission of the PPP road tender was postponed to August 1st , 2010.Five consortia have entered the bidding process according to WorldHighways:• Orascom has teamed up with French firm Egis and Belgian-based Besix• Austrian contractor Strabag is in partnership with local firm InternationalGroup for Investment and EFG Hermes• The Greek contractor Gek Terna has teamed up with Austrian companyPorr Solutions and local firm Hassam Allam• China Communication and Portuguese Soares da Costa• South Korean contractor GS EngineeringThe five prequalified consortiums are asked to submit their bids by August2011. The preferred bidder will be chosen in late 2011.This is a very important project for Egypt, probably the first PPP project intransportation.ME Roads & Railway Projects & Consortiums Page 20
  21. 21. Highways Privatization in TurkeyThe Turkish government is planning to invest $350bn in the transportation andcommunications 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 consortiumof six construction companies to carry out countrys largest-ever highway projectwhich will link Turkeys largest city Istanbul to third-largest city of Izmir. Thehighway will reduce travel time between Istanbul and Izmir from 6 hours 30minutes to about 3 hours.Under this $6.5-billion mega project, worlds second-longest suspension bridgewill 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 atleast 10,000 jobs and be completed in seven years, Turkeys TransportationMinister 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 yearsand 4 months, including construction time."The project is the largest to be carried out at one time under build-operate-transfer model in Turkeys 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 11years," Yildirim added.The consortium led by Astaldi was awarded the construction of a highwaylinking Istanbul and Izmir ($6.5 billion).ME Roads & Railway Projects & Consortiums Page 21
  22. 22. 24 highway projects (BOT) - November 27, 2010This week, we learned the Turkish General Directorate of Highways (KGM) ispreparing to carry out 24 highway projects across Turkey by making use of thebuild-operate-transfer (BOT) model.According to an Anatolia news agency correspondent, the total length ofhighways that will be built using the BOT model will be 9,380 kilometers. It isestimated that the projected will cost around $83 billion, including thenationalization of some properties near the planned highwayBelow 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. 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. 2011The Privatization Administration (OIB) of Turkey is planning to privatize ninehighways and two bridge projects, which include Bosporus Bridge and FatihSultan Mehmet Bridge. OIB is planning to award long-term concession to privateinvestors for 25 years. The minimum bid bond for the concession has been fixedat $200m as the OIB is looking for local and foreign investors to bid for theconcession.The Turkish Privatization Administration is looking for local and foreign investorsas well as held talks with 15 foreign investors regarding the concession. Theforeign investors who are expected to participate in the bid include ItalianAtlantia, Egis Projects as well as Spanish Abertis and Portuguese Brisa.ME Roads & Railway Projects & Consortiums Page 23

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