A UK team will evaluate the feasibility studies and the design of the $7bn metro.
UK-based team led by Ernst&Young has won the advisory deal for the $7bn Kuwait metro project. The group also includes Atkins as technical adviser and Ashurst as legal adviser. The group is expected to sign the contract once the state's Audit Bureau gives its approval.The client, the Partnerships Technical Bureau (PTB) recevied proposals from consultants on 27 May for the advisory deal.In November 2009, the PTB drew up a shortlist from an original list of 45 consultants, which expressed interest in the metro advisory contract.Ernst&Young will now act as the transaction adviser, helping the PTB structure, procure and negotiate the deal. This includes validating previous feasibility studies, carrying out due diligence on the project and overseeing the tender process.The group will also evaluate the design of the metro, which was carried out by Kuwait Overland Transport Union and Kuwait Municipality.Kuwait Metro detailsThe Kuwait Metro Rail Project is operated under the direction of Kuwait's Ministry of Communications and Spanish training company Ingenieria y Consultoria de Transporte (Ineco), which provided a master plan for the system.The Kuwait Metro Rail Project is a 171km-long inner city transport running across Kuwait City. It is the first metro rail project and the second private-public partnership project launched by the Government of Kuwait since 2009.The Kuwait Metro Rail Project was created to help ease the country's traffic congestion problems. Although Kuwait has a well-maintained, modern and extensive road network, it lacks a railway system, which has resulted in an increase in fatal accidents. There has been an increase in the number of vehicles due to cheap petrol prices.The number of expatriates in the country has grown, which has contributed to the city's traffic problems. According to 2007 estimates, Kuwait had a population of around 3.5 million, of which two million are non-nationals. The state has a migration rate of 16.01, which is the third highest in the world.Vehicles speeding at 120km per hour, lax enforcement of traffic regulation and high density traffic (one vehicle per person) have also lead to frequent and fatal accidents on Kuwaiti roads.Lines and routes:- Line 1 is 23.7km long and will connect Kuwait's southern metropolitan area with the centre of the city and the main university. This line will feature 19 stations. In the future this line will be extended by 57.3km.- Line 2 will be 21km long, connecting the main business district with the residential areas of Salmiya and Hawally, and will feature 27 stations. There are plans for this line to be extended by 16.4km.- Line 3 will be 24km long and will have 15 stations.- Line 4 will be 22.7km long and will connect the city centre with Kuwait International Airport. It will feature 15 stations including a few at residential areas and the Shuwaikh Industrial Zone.A private developer will design, build, finance, operate and maintain the metro network. The developer will own 40 per cent of the project company, the government will own 10 per cent and the state will sell the remaining 50 per cent in an initial public offering (IPO).November 7th UpdateErnst and Young has announced the start of its transaction advisory workon the landmark Kuwait Metro project.