Delays on the lines

09 December 2005
Plans to finalise the contracts to extend lines 3 and 4 of Tehran's metro system this year are facing delays. Officials now say they do not expect awards until the end of the Iranian year in March 2006 at the earliest. As a result, proposals to issue tenders for lines 6 and 7 have been put back as well, with bids now unlikely to be called next year (MEED 30:9:05).

Line 4 is under negotiation with China North Industries Corporation (Norinco)for $680 million, but the company is understood to be seeking more money to reflect increased equipment prices. On line 3, the local Rail Transportation Industry Company (Rtico)has still not brought a foreign partner to the table as required. The client, Tehran Urban & Suburban Railway Company (TUSRC), says it hopes to resolve outstanding issues with its preferred partners on the project and avoid a retender.

The two companies were chosen as the best placed bidders for the projects after a long-drawn out tender process that ended in 2004. However, negotiations have continued since then, with Rtico, a subsidiary of Industrial Development & Renovation Organisation (IDRO), seeking a partnership with Germany's Siemensor Canada's Bombardier. Both companies were unsuccessful bidders in the original tender. TUSRC says it will request local companies to lead the bidding groups on lines 6 and 7 and bring foreign equipment suppliers and finance with them.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications