Surprise low bid for Dubai Metro's Route 2020

06 March 2016

Team’s offer is 30 per cent cheaper than other bids

 Dubai Metro Route 2020 station

Dubai Metro Route 2020 station

Dubai Metro Route 2020 station

A team of Turkey’s Nurol, Italy’s Astaldi and Spain’s Construcciones y Auxiliar de Ferrocarriles (CAF) has submitted the lowest commercial offer for the contract to design and build the new metro link connecting to the Expo 2020 site.

The group submitted a price of about AED7bn ($1.9bn) with no alternative offer, which is 29 per cent smaller than the second-lowest offer of about AED10bn with no alternative offer.

Metro results*

  1. Nurol (Turkey) / Astaldi (Italy) / Construcciones y Auxiliar de Ferrocarriles (Spain) – AED6,998,874,922 (no alternative offer)
  2. Mapa Gunal (Turkey) / China Railway Group (China) / CSR Corporation (China) – AED9,891,387,231.14 (no alternative offer)
  3. Orascom (Egypt) / Yapi Merkezi (Turkey) / GS Engineering & Construction (South Korea) / Siemens (Germany) – AED10,019,449,463 (no alternative)
  4. Acciona (Spain) / Gulermak (Turkey) / Alstom (France) – AED10,224,868,000 (base offer), AED9,975,831,483 (alternative)
  5. Obayashi (Japan) / Wade Adams (local) / Consolidated Contractors Company (CCC; Athens-based) / Mitsubishi Heavy Industries (Japan) – AED10,394,846,241 (base offer), AED10,341,846,241 (alternative offer)

*=All five consortiums provided financing offers.

The scheme, known as Route 2020, involves building a 15-kilometre-long line branching off the existing Red Line at the Nakheel Harbour & Tower station, between the Ibn Battuta Mall and Jumeirah Lake Towers stations. The line will also connect to Al-Maktoum International airport.

About 11km of the line will be elevated, with five elevated stations and two underground stations.

History repeats itself with Dubai Metro low bid

Colin Foreman

Colin Foreman

In late February 2005 Dubai’s construction sector was stunned when a consortium led by Japan’s Mitsubishi Corporation submitted the lowest bid for the contract to deliver the first phase of Dubai Metro.

The price, which was some 40 per cent lower than the second lowest price, was at the time considered by other bidders to be too low and impossible to deliver. Despite the concerns raised, Dubai Municipality, which was handling the project before the Roads and Transport Authority (RTA) was created, went ahead and awarded the consortium the contract.

Just over 11 years later and history is repeating itself with Dubai receiving another bid for metro work that is significantly lower than the competition. On 6 March the RTA opened commercial offers the contract to design and build the new metro link connecting to the Expo 2020 site.


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