MEED reported that US engineering giant Bechtel is the favorite to win the project management consultancy deal to oversee the construction of the Phase I of Abu Dhabi state owned Union Railway’s UAE wide railway network development.

The Phase I of the USD 11 billion scheme involves the construction of a 270 kilometers freight line that will connect oil and gas processing and distribution facilities at Ruwais in the north with the Shah Gas field in the south of the emirate.

Sources close the scheme tells that Bechtel, which has already been working as an advisor on the project, is the favorite to win the main deal to oversee the engineering, procurement and construction contractors who build this part of the railway and may be appointed the PMC contractor for the entire network.

The US engineering firm is also bidding on two PMC deals to oversee the construction of gas and sulphur production, processing and distribution facilities across the emirate as part of USD 10 billion JV Shah Gas project being developed by Abu Dhabi National Oil Company and the US’ ConocoPhillips.

Mr Richard Bowker CEO of Union Railway said that companies will also be invited to pre qualify for construction deals on the rail project in the Q3 of the year. The first construction contract will be awarded by the end of the year with construction scheduled to begin in 2011. The entire railway network is expected to be completed by 2017.

Mr Bowkey said that “We have not disclosed what the next contract will be but the plan is to build the entire network over the next seven to eight years so people will not have to wait too long.”

He said that the 1,500 kilometers network will eventually include a freight and passenger rail line extending from Abu Dhabi’s Western region through the other emirates of Dubai, Sharjah, Umm al Quwain, Fujairah, Ras al Khaimah and Ajman. The railway will also link up with the GCC railway network.

(Sourced from MEED)