27
February 2004
Middle East Economic Digest
French railway operator Societe Nationale des Chemins de Fer (SNCF) has
been awarded the mandate to provide technical advisory services to Saudi
Railways Organisation (SRO) on the expansion of the kingdom's railway
network. The appointment of SNCF, which had been expected for some time,
has already been approved by the Supreme Economic Council (SEC). SNCF
joins the financial advisory team comprising National Commercial Bank
(NCB) and UBS Warburg (MEED 12:12:03).
Under the advisory mandate, SNCF, NCB and UBS will provide services on
two components of the railway expansion programme - the east-west railway,
linking Riyadh with Jeddah, and the western railway, which will connect
Jeddah, Makkah, Medina and Yanbu.
SRO still has to appoint a legal adviser, which will be mandated to make
recommendations on changes to the legal and regulatory environment to
allow private sector involvement in the railways. The legal adviser will
also consult on the merger of SRO with the future concessionaire of the
east-west link. Following the merger, SRO will effectively cease to exist
and will be fully integrated in the private concession-holding company.
SRO also plans to invite consortia to prequalify in the second half of
the year for the two railway concessions (Saudi Arabia, MEED Special
Report, 19:12:03, pages 45-47).
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