Rtico has signed a letter of intent with TUSRC to carry out line 3 after winning the contract last year against competition from Siemens and CTIC. However, its low bid was based on cheaper Chinese rolling stock and its civil engineering, and TUSRC wants an improved civil engineering and design proposal. This could force the company to claim provisional costs and adjust its price from the $900 million originally offered. Rtico is a subsidiary of Industrial Development & Renovation Organisation (IDRO)and lacks extensive experience of work on urban rail systems.

The foreign scope of works is likely to be worth $400 million-500 million. It will include electrification, signalling and utilities, including a fire-fighting system. It will also include the manufacture of rolling stock, which is expected to be the largest package of work. Line 3 needs 160 wagons, each costing $500,000-700,000. However, the successful contractor will also be required to develop a domestic wagon manufacturing line with IDRO. Canada's Bombardieris also bidding for the rolling stock work.

In early February, the local press quoted the head of TUSRC as saying that the Majlis (parliament) had approved $2,000 million of finance for the new metro lines and that some $8,000 million would be needed to expand the network by 2025. Lines 1 and 2 are to be extended northwards and eastwards respectively and a new line is planned to Imam Khomeini International Airport to the south of the city.

www.meed.com/transport