Austria's Strabag pulls out of Riyadh metro project

Tue Apr 16, 2013 5:49am EDT
 
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VIENNA, April 16 (Reuters) - Austrian construction firm Strabag has pulled out of a bid to build a new metro system in Riyadh, where it had been leading a consortium of firms, it said on Tuesday.

"Due to the complexity of the project, it did not pass our selection criteria," a Strabag spokeswoman wrote in an email to Reuters, confirming a report in Austria's WirtschaftsBlatt.

The development authority has not given a cost for the project but metro systems typically cost billions of euros.

Saudi Arabia shortlisted four consortia last July. The other three were led by Canada's Bombardier, French firm Vinci and Spain's FS Engineering and Construction.

The other members of the Strabag consortium include Italy's Ansaldo STS, Switzerland's Stadler Rail, India's Larsen & Toubro Ltd, Britain's Hyder Consulting and U.S. firm WorleyParsons.

Saudi Arabia has only limited public transport facilities, and Riyadh suffers grinding congestion for much of the day and into late evenings.