L&T-led JV bags contract worth USD 509.1 million from Etihad Rail

Abu Dhabi, United Arab Emirates (Urban Transport News): UAE's national rail authority, Etihad Rail has awarded a contract worth USD 509.1 million (AED 1.87 billion) to a consortium of Larsen & Toubro Limited (L&T) and Power China International (PCI) for construction of Package A of Stage 2 of the national railway network. The 139 km long Package A is part of the 1,200-kilometre national rail network of UAE. The contract agreement was signed on January 30, 2020, by Shadi Malak, Chief Executive Officer, Etihad Rail; Anupam Kumar for Larsen & Toubro Limited and Hong Lee for Power China International (PCI), in the presence of S N Subrahmanyan, Managing Director, L&T and Wu Wenhao, President, Power China International. The Construction works under the Package A was approved and launched by HH Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, chairman of the Abu Dhabi Crown Prince's Court, and chairman of Etihad Rail. According to the contract package, L&T-PCI JV will be responsible to construct freight facilities for the railway network which is estimated to AED 1.87 billion (equivalent to USD 509.1 million). The scope of work includes survey, design, construction, equipment installation, testing, and pre-commissioning of each facility. The Package A will cover a total of 139 km length, starting from Ghuweifat on the UAE border with Saudi Arabia to Ruwais, where the line connects with Stage 1 of the national rail network. During the construction activities under Package A, the contractor will use 700,000m3 of ballast, 27,215,542 tonnes of earthwork, and the installation of over 450,000 concrete sleepers provided which will be provided by Etihad Rail through its own manufacturing plant that produces up to 45,000 railway sleepers each month. With the award of Package A contract, Etihad Rail has now completed the contract process of Stage 2 of the national rail network which will connect Fujairah and Khorfakkan on the Emirates’ east coast to the UAE border with Saudi Arabia at Ghuweifat.

H.H Sheikh Theyab bin Mohamed Al Nahyan, our Chairman, attended a contract signing with a joint venture of Larson and Toubro Limited and Power China International, to construct freight facilities for the railway network at a cost of AED 1.87 billion. pic.twitter.com/9kRcbWUNu3

— Etihad Rail (@Etihad_Rail) January 30, 2020

Commenting on the contract award, HH Sheikh Theyab bin Mohamed said:

The launch of construction works under Package A witnessed Etihad Rail’s transition from planning and design to the actual implementation of the project on the ground.

The UAE's national rail authority Etihad Rail is developing a series of freight facilities in Ruwais, Industrial City of Abu Dhabi, Khalifa Port, Dubai Industrial City, Jebel Ali Port, Al Ghayl and Siji, Fujairah and Khorfakkan Ports.