Timetable

What is the timetable for the competition?
Answer: Invitations to bidders to pre-qualify are expected to be published in the first half of 2005. Bids from consortia will be invited during the second half of 2005.

When is the invitation document due out?
Answer: We expect to invite consortia to pre-qualify in the first half of 2005.


Commercial

How is the Saudi Landbridge project to be implemented?
Answer: Approval has been given for the Saudi Landbridge project to be undertaken on a BOT basis.

Which concession precedent do you expect to follow?
Answer: We continue to discuss this with our financial and legal advisors.

What is the nature of revenue risk to be transferred?
Answer: We are currently updating the traffic forecasts that support the project and expect to take these types of decisions once we have the necessary information on traffic flows within the Kingdom.

Will subsidies be available if necessary?
Answer: All options for successfully implementing both projects will be fully considered.

Will there be a requirement to provide passenger services?
Answer: We expect that a passenger service will be a feature of the final BOT scheme.

Do you have all the necessary land ownership, planning and development approvals?
Answer: Necessary approvals should be in place at the right time. The route alignment is currently being finalised. Planning and development approvals should not be a problem given the Supreme Economic Council's decision to proceed with the project.

What revenue forecasts have been completed? Will they be refreshed before the invitation is issued? Will they have been validated?
Answer: Several traffic studies have been completed in the past and we are currently updating a passenger and freight forecast, which we will include within the Information Memorandum that will be made available to prospective bidders
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What are your current expectations for freight volumes on the Saudi Landbridge?
Answer: Traffic volumes were last assessed in 1999. We are presently in the process of updating these estimates.

How long will the concession be?
Answer: Most concessions for infrastructure assets have tenure from 25 to 50 years. No firm decision on this matter has been taken.

Will the concessionaire take over the existing operations of SRO, including all the existing personnel?
Answer: Yes, the concessionaire will take over the existing operations of SRO and will find it beneficial to retain the accumulated experience of SRO's personnel.

Are there precedents in Saudi Arabia for the transfer of personnel and the assumption by a private sector entity of responsibility for Saudi civil servants?
Answer: Saudi Telecom Company ("STC") is a recent example. Although there is much to be learned from STC's experience, we believe that SRO's case must be handled on its own merits.

What are your expectations/intentions regarding Riyadh Dry Port?
Answer: Riyadh Dry Port is an asset of SRO and will most likely be treated in the same manner as other SRO assets.

What inter-relationship do you envisage between the Saudi Landbridge and the Makkah Madinah Rail Link?
Answer: KSA will proceed with these two projects as two distinct concessions. However, it is foreseen that the two projects will share at least one common passenger station.

How will the proposed North-South Railway interface with the Saudi Landbridge?
Answer: The North-South Railway will be primarily for transport of minerals from mines located in northern Saudi Arabia to the industrial city of Jubail. It may use the portion of the Landbridge between Riyadh, Dammam and Jubail. Similarly, Landbridge traffic will have the right to use the North-South line.

Will there be any kind of guarantee about competing modes?
Answer: The main competing mode for the Saudi Landbridge is the existing untolled road network. As this network has been built relatively recently it is in good condition, the SRO believes that bidders will have a good idea of the competitive landscape.


Legal

Will the concession for the Saudi Landbridge project be governed by Saudi Law?
Answer: The concession will be governed by Saudi Law.

Do you think it will be possible to raise limited recourse finance against the concession?
Answer: Limited recourse financing is common for projects in Saudi Arabia and the Gulf.

What are your thoughts on regulation?
Answer: On a project of this nature with multiple users, we must ensure appropriate regulations are in place to protect all interested parties.


Technical

Have you developed the outline design?
Answer: Design parameters are known, but detailed design will be undertaken by the concessionaire. The design of some facilities, such as Jeddah Passenger Station, will require prior approval.

Have you thought about the type of railway that will be built?
Answer: The Landbridge will be a single or double track, non-electrified railway to be used for freight and passenger services.

Have you worked up an approximate cost estimate for the whole project?
Answer: Yes, we have prepared a cost estimate.

Do you have firm views about the siting of depots and stations?
Answer: Some of these facilities have already been defined and located, with the remainder being addressed in the route alignment study.

Has an environmental audit been carried out?
Answer: Not yet, but is being completed as part of the route alignment study.


Potential Bidders

What capabilities will be critical in your view to bidding groups?
Answer: Important capabilities include an understanding of the international freight market and the ability to construct and operate a railway efficiently and to raise the finance required for the project.

Who are you expecting to bid?
Answer: We expect bids from major players in the fields of construction, railway operation, shipping and equipment manufacture, possibly in conjunction with major local and regional companies.

How many companies have already expressed interest?
Answer: We have received informal and unsolicited expressions of interest from a large number of national and international parties.

When will you circulate a list of companies interested in bidding for the project?
Answer: In mid 2005.

What will be the basis for bid evaluation?
Answer: The final evaluation criteria will be published in the tender invitation documents.