Orascom Construction PLC (NASDAQ Dubai: OC; EGX: ORAS) announces that its consortium with Mitsubishi Corporation signed a contract with the National Authority for Tunnels (NAT) to execute the Railway Systems, Track and Depot Works Package (CP411) for Cairo Metro Line 4 Phase 1. The total value of the turnkey contract is approximately USD 800 million and Orascom Construction’s share exceeds USD 350 million.
The scope of work includes signaling, power supply, telecommunication, platform screen door, automatic fare collection, track work and the depot/workshop.
The project is going to be financed by a Japanese Yen Credit Loan provided by the Japanese International Corporation Agency (JICA) under the condition of the Special Technical Economic Partnership (STEP), which is the first time to be implemented in Egypt.
Cairo Metro Line 4 will be constructed as a new underground line and is a mass rapid transport system that is expected to reduce traffic congestion. Phase 1 will stretch across 19 km and 16 stations, connecting the center of Greater Cairo to the pyramids area in Giza. It is also expected to be a main metro line for tourism transportation in Egypt, arriving up to the pyramids area and the Grand Egyptian Museum (which is under construction by Orascom Construction and BESIX).
Osama Bishai, CEO of Orascom Construction, commented, “This contract is testament to our strength in the transportation sector and builds on our longstanding involvement in the development of Cairo Metro. We are pleased to partner with Mitsubishi Corporation on this new line which will be receiving funding from the Japanese International Corporation Agency and to collaborate once again with our repeat client, the National Authority for Tunnels. This project also positions us for future work in this sector, ranging from new phases of Cairo Metro to new railway projects.”
This new contract reinforces Orascom Construction’s leadership in the transportation sector in Egypt and particularly across the railway and metro segments. The Group has been active in the development of Greater Cairo Metro since the 1980s and is currently executing, along with its partners, all phases of Greater Cairo Metro under construction.
Orascom Construction recently delivered Cairo Metro Line 3 Phase 4B which stretched across 8km and included five elevated stations and a depot, and is currently executing the world’s longest monorail system and the Light Rail Transit project in Egypt.