Spanish firms consortium to ink Haramain High Speed Rail link project

Posted on 22nd November 2016

A consortium comprising 12 Spanish firms is preparing to ink agreements with Saudi Arabian officials for the development of the high-speed Haramain High Speed Rail link between Mecca and Madina.


The value of the construction and maintenance contract for Haramain Rail is worth $7.11bn (SAR26.6bn).

Following "a series of delays and setbacks", a preliminary deal has been reached between Saudi officials and the Al Shoula consortium that includes Spanish companies such as OHL and Indra, and two firms from the kingdom, Arabian Business reported.

The consortium had reportedly "become embroiled in a dispute over payments with the Saudi government".

"This principle agreement... resolves the differences that emerged between the two sides during the process [and] clears the way for completion of the works," Spain's public works authority said in its statement.

Spain's public works authority said the contract's scope includes "the design and construction of the road and systems along more 450km, the supply of 35 trains, and the operation and maintenance of all elements of the line for 12 years".

Other companies in the consortium include Consultrans, Siemens, and Talgo, according to Constructionweekonline news report.

Last February, Spanish train manufacturer Talgo announced Saudi Arabia had cancelled a contract for six high-speed trains, which it had signed with the manufacturer in February 2015 for $201m.

Talgo had been handed the contract following a feasibility study into building a high-speed rail line between Riyadh and Dammam.

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