EXCLUSIVE: Bahrain to procure light rail using PPP

26 February 2018
Bahrain’s Transport and Telecommunications Ministry expects to issue tender for transaction adviser in the second half of 2018

Bahrain expects to procure its under-study light rail network using a public-private partnership (PPP) model, according to Transport and Telecommunications Minister Kamal bin Ahmed Mohammed.

“I think it is the best way to implement it,” Mohammed tells MEED, citing that the government will start preparing the request for proposal for a transaction adviser as soon as the study by Spanish firm Idom Consulting Engineering Architecture is completed in May.

It is understood that the contract with Idom, valued at $2.43m, has been extended due to the ministry’s request for more detailed work in terms of the specifications, alignment and number of stations, as well as the financial business case and the preparation of the prequalification documents. The study was initially expected to be completed in September last year.

“We want to make sure all these [preparatory works] are completed to ensure we have minimum risk with the project,” Mohammed explains.

The contract with Idom covers a study of the existing transport system in Bahrain; preparing plans for a proposed network and phases; selecting the best technology for the different phases; the preliminary design of the first phase of the network; the cost of implementing phase 1; and the best method to procure phase 1.

However, the study's findings will still have to be presented to and approved by the government before the ministry can proceed to the procurement stage.

Mohammed is confident of the government’s support for the project.

“This is the future of Bahrain. We cannot continue building roads… [Roads] will not solve the problem; we will just delay the problem and congestion will continue,” he says, indicating that Bahrain has spent BD1.5bn ($3.9bn) on road-building over the past two years.

“We need to change policy to move people from personal cars, but simultaneously we have to make a better provision for public transportation.”

 

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.