Makkah metro projects worth $5 bln said to face delays

Construction deals worth $5 billion for Makkah Metro’s first phase are expected to be awarded by the end of this year, missing the original May 30 deadline, Middle East Economic Digest (MEED) has reported citing an unnamed source familiar with the matter.

The metro network is set to be built in three phases with a total budget estimated at $16.5 billion (SAR 62 billion).

Last November, Kuala Lumpur’s transport agency Prasarana was appointed to provide consultancy services during phase 1. Interested bidders include Nesma and Partners, Orascom Construction Industries, and Saudi Binladin Group.

The metro is part of the wider Makkah Public Transport Program (MPTP), which is a $16.5 billion (SAR 60 billion) plan to develop the city’s transport systems. It also includes a bus network.

Saudi Arabia is aiming to ease traffic congestion across its key cities. Rail projects worth over $36 billion are currently underway in the kingdom, including the $23 billion Riyadh Metro and the $8.9 billion Haramain High-Speed Rail Network.