A consortium of Orascom Construction, Siemens Mobility and Arab Contractors has signed a US$4.5bn (£3.3bn) contract to build a high-speed rail system in Egypt.

The contract with the National Authority for Tunnels (NAT) involves the design, installation, commissioning and maintenance. The construction scope includes the track works, signalling and overhead catenary, telecommunication system and traction power substations, while the 15-year maintenance scope encompasses the track works and telecommunications system.

The contract covers the initial 660km out of the 1800km planned network. The initial 660km stretch of high-speed, electrified main and freight rail line will connect the port cities of Ain Sokhna on the Red Sea to Alexandria and Marsa Matrouh on the Mediterranean Sea.

The consortium expects to create more than 15,000 direct jobs in Egypt, with an additional 3,800 at Egyptian suppliers and indirectly through the country’s wider economy.  

The consortium will execute the project on an EPC and finance basis whereby it will help structure and arrange financing for the project on behalf of the client. Financial close is expected to take place next year.