Etihad Rail tenders second stage of UAE rail network

23 July 2012

Two contracts cover the construction of railway line in Abu Dhabi emirate

Abu Dhabi-based Etihad Rail has invited companies to bid for construction contracts on the second stage of the UAE’s $11bn federal rail network.

The two contracts that have been tendered are packages A and B. The tender closing date for package A is 7 October and the work involves building 137 kilometres of railway line between Ghuweifat and Ruwais in Abu Dhabi emirate. The deadline for submissions for package B is two days later on 9 October. The contract involves building a further 190km in of track in Abu Dhabi emirate between Liwa and Al-Ain.

Three other packages, known as C, D and F will be tendered later. Two contracts are for the construction of railway line. Package C involves the construction of a 186km line between Al-Ain and Jebel Ali port in Dubai. Package F will cover the construction of a branch line between Mussafah and Industrial City Abu Dhabi.

The third contract, package D, will cover the railway integration and systems. Contractors were invited to prequalify for the contracts late last year.

The civil and tracks contract for the first phase was awarded to a consortium led by Italy’s Saipem in October last year. The first phase of the railway involves building a 265km track between the port of Ruwais and gas fields at Shah and Habshan.

Etihad Rail has still not secured funding for the first phase of the rail network. In June, it asked banks to express interest in funding a loan of up to $1.3bn. The company asked banks to give indications of what levels of commitment they could provide across loans of several different tenors ranging between five and 20 years, and what sort of pricing they would charge on those loans.

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