Race for Oman Rail Segment 1 package down to 3 groups

05/07/2015 03:47 AST

Oman Rail appears to have narrowed down its search for a suitable candidate to execute its multibillion dollar Segment 1 package of the National Rail Network to three consortiums, the Observer has learnt. At the weekend, three of the five consortiums on the national rail company’s shortlist for the prestigious package were asked to extend the validity of their bid bonds to October this year, effectively suggesting that they remain in contention for the keenly contested contract. The trio in question are the joint ventures of (i) Porr Bau GmbH (leader) of Gemany, Yuksel Insaat (Turkey), Sarooj Construction Company LLC (Oman) and Daewoo E&C LLC (Korea); (ii) JV of Saipem SpA (leader), Rizzani De Eccher SPA and Dogus Insaat, and (iii) JV of Salini Impregilo SPA.

The other two consortiums on the shortlist– (i) the JV of Larsen & Toubro Ltd (leader), FCC Construction SA and Khalid Bin Ahmed & Sons; and (ii) the JV of China State Construction Engineering Corporation (leader) and SK E&C – were told to collect their bid bonds.

It was not immediately clear if Oman Rail had named a preferred bidder from among the three groups figuring on its latest shortlist, of if indeed the three groups were ranked in any order of preference.

Regardless, the move underscores efforts by the state-owned rail company to fast-track its quest for a competent international rail contractor in order to allow for construction work of Segment 1, covering the crucial 207 kilometre stretch from Sohar Port to Buraimi, to begin in earnest before the end of this year. A contract award is likely in the early part of the fourth quarter of this year.

The successful bidder stands to win a contract that is widely billed as the largest and most complex infrastructure development in the Sultanate to date. Expected to cost several billions of dollars, the Design & Build contract covers the design, supply, installation, construction and completion of works related to Segment 1 comprising three distinct sections: Sector 1A, covering a distance of 127km, connects the station of Sohar to the Oman-UAE border at Al Buraimi and Khatmat Milahah. Sector 1B is a 34-km spur line that departs from Sector 1A and ends at Buraimi station. Sector 1C is 38km spur line connecting the Port of Sohar to Sector 1A.

Also envisaged for implementation at vantage locations along the alignment are a number of railway facilities, including stations, freight yards, wayside maintenance bases, and maintenance depots. A further eight kilometres of track will be constructed to connect junctions at Sector 1A to 1B and 1C.

Oman Daily Observer