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Tuesday, 6 August 2019

Egypt signs USD 4.5 bn agreement for monorails to Giza and new capital

Orascom’s long awaited USD 4.5 bn monorail agreement finalized: A consortium of Bombardier Transportation, Orascom Construction and Arab Contractors signed yesterday a contract with the National Authority for Tunnels in Cairo worth more than USD 4.5 bn to work on two planned monorail lines, Orascom Construction said in an EGX disclosure (pdf). The consortium will design, build, supply and operate the lines, which will link 6 October City to Giza and Nasr City to the new administrative capital. “We are very pleased to collaborate with our international partner Bombardier and our local partner Arab Contractors on this project, which highlights our strength in the transportation sector and emphasizes our position as the partner of choice for international contractors in Egypt particularly on challenging projects,” said Orascom Construction CEO Osama Bishai. The consortium was tapped as the tender’s preferred bidder in May, after languishing without a winning bidder and contracts signed for four years.

Consortium has the keys to the project for 30 years after construction: Orascom’s statement fleshes out the details of the contract, which was announced in an Ittihadiya statement yesterday but was scant on details. The consortium will be responsible for the operation and maintenance of both lines for 30 years, and will design, build all infrastructure and civil works, including stations, guideway structures and new depot buildings. Bombardier owns close to USD 2.85 bn of the project while Orascom Construction close to USD 900 mn. Reuters also picked up the story.

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