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SAUDI

Giant Spain-Saudi desert rail project delayed yet again

A delayed high-speed railway linking Mecca and Medina in Saudi Arabia will finally open in March 2018, the Spanish consortium building the project said Friday.

Giant Spain-Saudi desert rail project delayed yet again
The project was one of the biggest ever undertaken by Spanish firms abroad. Photo: Pedro Armestre/AFP
The railway linking Islam's holiest cities was initially scheduled to open at the end of the year but the date for its completion was moved to the end of 2017.
 
Now, according to a spokesman for the Al-Shoula consortium, “full operations will start in March 2018.” Partial operations will begin a few months earlier, in December, he added.
 
Saudi Arabia in 2011 awarded the contract worth 6.7 billion euros ($7.1 billion) to the consortium of 12 Spanish companies and two Saudi firms for the project which aims to improve transport between the two cities during the
annual hajj pilgrimage.
   
According to the spokesman, Saudi authorities agreed to pay an extra 600 million riyals (150 million euros; $160 million) to compensate additional costs of the project.
   
The contract — one of the biggest Spanish firms have ever undertaken abroad — is for the laying of the 444 kilometres (275 miles) of track between Mecca and Medina, providing 35 trains and maintaining the line for 12 years.
   
When it is finished, the rail link will be able to move 166,000 passengers per day.
   
But the project has run into challenges that have added to its costs, leading to disagreements among members of the consortium over who is responsible for resolving them.
   
The rail line crosses the Arabian Desert, where sandstorms are frequent and large dunes can suddenly form, which has added to the difficulties in completing the project.
   
The leading firms in the consortium — Spain's rail company Renfe, train maker Talgo, and state track operator Adif — have extensive experience with Spain's own high-speed network, the world's second largest after China's.

YEMEN

French firm strikes Saudi weapons deal despite Yemen pressure

Saudi Arabia's state arms producer and a French government-majority firm signed an agreement Sunday on a joint venture to boost the kingdom's navy, amid calls to halt weapons sales to Riyadh over it role in Yemen.

French firm strikes Saudi weapons deal despite Yemen pressure
Saudi hovercraft participate in last year's "Gulf Shield 1" military drills. Photo: Bandar Al-Jaloud/Saudi Royal Palace/AFP

The memorandum of understanding between Saudi Arabian Military Industries (SAMI) and France's Naval Group is aimed at providing the oil-rich Gulf state's navy with “state-of-the-art systems”, a statement said.  

“Through design, construction, and maintenance activities, the joint venture will contribute significantly to further enhancing the capabilities and readiness of our Royal Saudi Naval Forces,” SAMI boss Andreas Schwer said.

A spokeswoman for Naval Group — which is owned by the French state and French multinational giant Thales — refused to give any more details.    

French lawmakers and rights groups have repeatedly called on France's government to suspend all arms deals to Riyadh because of the war in Yemen, where some 10,000 people have been killed since a Saudi-led coalition intervened in 2015.  

Riyadh is battling on the side of the internationally recognised government against Iran-aligned Huthi rebels, in a conflict that has seen all sides accused of potential war crimes. 

The US House of Representatives this week voted overwhelmingly to end American involvement in Saudi Arabia's war effort in neighbouring Yemen, dealing a rebuke to President Donald Trump and his alliance with the kingdom.

France, one of the world's biggest arms exporters, has sold equipment to Riyadh and fellow coalition member the UAE — notably Caesar artillery guns and ammunition, sniper rifles and armoured vehicles.

OPEC kingpin Saudi Arabia has been one of the world's top arms buyers for the past several years.

But in 2017, the kingdom's Public Investment Fund set up SAMI to manufacture arms locally with the fund expecting it to become one of the world's top 25 defence companies by 2030.

Naval Group — which was previously called DCNS — has been embroiled in a long-running graft scandal over the 2002 sale of two Scorpene submarines to Malaysia for $1.2 billion. 

The submarine maker is alleged to have paid more than 114 million euros ($128 million) in kickbacks to a shell company linked to a close associate of ousted Malaysian leader Najib Razak. 

A French investigation launched in 2010 has already led to four French executives involved in the deal being charged. They all deny wrongdoing.

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