Scomi tipped to bag Saudi project

Scomi Engineering will know by end-July if it has secured the US$1 billion monorail project in Riyadh, Saudi Arabia

Scomi Engineering Bhd (7366), the energy and logistics engineering subsidiary of Scomi Group Bhd, is one of two front-runners to win a US$1 billion (RM3.53 billion) monorail project in Riyadh, Saudi Arabia, industry sources said.

The other candidate is a partnership between Saudi Binladin Group and Japan's Mitsubishi Corp.Business Times understands that Scomi Engineering will know by end-July if it has secured the contract.

The monorail project is part of the US$40 billion (RM141 billion) development of the Princess Noura Bint AbdulRahman University for Women, the world's largest women-only university.It includes an 11km system elevated 10m above the ground, linking facilities at the university.

The project is expected to take three years to complete.Scomi Engineering had submitted a comprehensive bid for the monorail project through its Saudi partner, Al Arab Contracting Co, which is part of the Al Rajhi Group.

It was reported that four contractors were pre-qualified to bid on the project last month. The others were Saudi Oger with Canada's Bombardier and the local El-Seif Engineering & Contracting with Germany's Siemens.Another group, Saudi Freyssinet with Italy's Ansaldo, also pre-qualified.

Saudi Oger, Saudi Binladin Group and El-Seif already have construction contracts in hand for the university project."This is an urban light rail solution tender. Scomi Engineering intends to supply the monorail, signal-ling and communication systems,among others. Its partner, Al Arab, will be the lead partner and civil contractor," the source said.

The source added that Scomi Engineering will hold a 45 per cent interest in the design-and-build project. The rest will be held by Al Arab."If Scomi Engineering gets the contract, it will be its biggest achievement in Saudi Arabia and it will prelude to many more bids in the region," the source said.

Scomi Engineering has a special team stationed in Saudi Arabia to monitor projects, the source added.Earlier this week, Scomi Engineering said it was also bidding for a US$2.5 billion (RM8.8 billion) monorail project in Sao Paulo, Brazil.The tender for the first phase, which will open in mid-July, is part of a 100km monorail project to be commissioned by the State of Sao Paulo in preparation for the 2014 World Cup, to be held in Brazil.