Egypt’s National Authority for Tunnels (NAT) has signed a memorandum of understanding (MoU) with Japan’s Mitsubishi Corporation for the systems and signalling package for the first phase of Cairo Metro’s Line 4.

The final contract has yet to be signed, a source familiar with the project tells MEED.

NAT received two bids for the contract in August last year. One team comprises Mitsubishi Corporation and the local Orascom Construction, and another team comprises Hitachi and Sumitomo, both of Japan.

NAT retender

NAT is preparing to retender the two civil works contracts for the scheme.

A consultancy team led by Japan’s Nippon Koei is understood to have completed the revised terms of reference and is preparing the tender documents for the two packages.

Last March, NAT requested Tokyo-based Japan International Cooperation Agency (Jica) – which has agreed to provide financing for the project – to reject the bid for the civil works package because of the “high price of the submitted bid”, and asked for the contract to be retendered.

MEED reported last year that the first civil works package for the scheme was to be imminently awarded to the sole bidder, a joint venture (JV) of Japan’s Taisei Corporation and local firm Orascom Construction.

In January, the bid for the second civil works package was still undergoing technical evaluation. The Taisei/Orascom JV is also the sole bidder for that contract.

NAT structured the first phase of Cairo Metro Line 4 into four packages. In addition to the two civil works packages, there is one package each for the rolling stock and electromechanical and signalling systems.

In July, NAT cancelled the tender for the metro’s rolling stock package. The authority cited Mitsubishi Corporation’s price submission as “higher than the estimated value defined for such works”.

Japan’s Mitsubishi Corporation was the sole bidder for the rolling stock package.

Jica has agreed to finance about half of the estimated $4bn required for the implementation of the first phase of Cairo Metro’s Line 4.

It is understood Jica has already concluded the loan agreement for an initial $300m, with the remaining loan value to be released “based on the project’s progress”.