OREANDA-NEWS. On January 23, 2007 the Company received a formal letter from Saudi Arabia’s Ministry of Finance containing an invitation to begin negotiations for a contract valued at about USD800 million, reported the press-centre of Russian Railways.

"Following the opening of the envelopes with the financial proposals from the parties, which took place in two stages, in early November 2007 and early January 2008, the proposal Russian Railways was declared the best," said Vladimir Yakunin, President of the Company.

The technical side of the proposal submitted by Russian Railways was also considered one of the best.

The CTW-400 Contract provides for the construction of a stretch of railway between Al-Zabira and Riyadh’s King Khalid International Airport. The total length will be about 520 km, including main routes of about 470 km. In addition, the contract provides for 621 water pipes, 20 camel crossings, 26 rail and road overpasses and 8 railway bridges.

"Russian Railways’ staff have extensive experience in constructing steel track in desert conditions," stressed Vladimir Yakunin.

To recap, in June 2006, Russian Railways successfully passed the pre-qualification stage and thus had the right to participate in the tenders for the construction of Saudi Arabia’s North-South main line railway.

In late October 2007, Russian Railways submitted a tender for the CTW-400 contract to the State Investment Fund at the Saudi Arabian Ministry of Finance.