It is reported that tenders will be issued in mid July for the first of three main contracts to build the USD 6 billion high speed rail link between the holy cities of Mecca and Medina.

The Saudi Railways Organization is preparing to issue requests for proposals for the civil works contract to the six international consortiums bidding for the Haramain high speed rail project, previously known as the Mecca-Medina rail link. Saudi Arabia decided earlier this year to issue the contracts on a public procurement basis rather than use the original build operate transfer approach.

This first package will be followed by a contract to build stations along the 445 kilometer long route and a third package to build rolling stock, track, communications and signaling systems and carry out operations and maintenance work.

Mr Abdulaziz al-Hokail president of Saudi Railways Organization said that "We want all three RFPs out within six months, and to move the process along rapidly because the rolling stock alone will take three years to build.”

Mr Al-Hokail said that "We decided using government finance would speed up the whole process. We told the six consortiums to stay together and we would start the bidding soon. The final draft of the first tender is being finalized now."

He added that "We have a timetable for all three packages. As soon as the first is out, we will begin preparing the RFPs for the stations."

Mr Al-Hokail said that "Once we have a winning bidder, the SRO will begin to be phased out and all employees will transfer to the new company, which will oversee new projects and ensure there is no unfair competition.”

One official at a lead company in one of the six consortiums says his group is preparing to bid for all three contracts said that "We have been told to expect the first tender in a few days and we want to win all three contracts. The change of structure to the bidding has not changed that."