CR-NORINCO clarifies contract value for OLMT

Published: September 1, 2018


With reference to a report published in The Express Tribune on August 26, 2018, titled, ‘OLMT most cost-intensive project in world’, CR-NORINCO, the joint venture of China Railway Corporation and China North Industry Corporation, has clarified the following.

OLMT most cost-intensive project in world

“It was mentioned in the report that the government has procured 27 five-car trains (total 135 coaches), besides track laying and electrical and mechanical works by Chinese engineers, for whopping $1,000 million, which is over 60% of total project cost. However, the above-mentioned report disaccords with the facts after verification.

“As a matter of fact, the total contract value undertaken by the joint venture of China Railway Corporation and China North Industry Corporation (hereinafter referred to as “CR-NORINCO”) is $920 million. CR-NORINCO’s scope of work involves engineering (the highest Chinese standard by 2016), procurement and construction of E&M equipment (including $180 million for procurement of rolling stocks) and part of civil works equipment.

“Besides rolling stocks amounting to $180 million (including 27 train sets of 5-car 3M2T configuration and totally 135 metro cars with a unit price of $1.33 million per car), the E&M works also include maintenance equipment for two metro lines’ rolling stocks overhaul and midterm maintenance, FAS, BAS, FES, AFC, SCADA, 2 Double Insurance HVS, LPS and TSS (Double circle high voltage power cable), Communication, signaling system together with related supporting diesel locomotives for rescue and shunting, official and rescue vehicles by the crew members and maintenance staff.

“The civil works undertaken by CR-NORINCO includes the following four systems: track (including 26km of ballastless track and 15km ballast track), illumination, WSD(water supply and drainage) and HVAC(heating, ventilation and air conditioning).

Contractor describe OLMT as a nightmare project

“Moreover, the cost for engineering (project concept design and E&M detail design),training for equipment of different systems, special tools and spare parts, and the related expenses for local taxes and dues are also included in CR-NORINCO’s contract quotation.”

Published in The Express Tribune, September 1st, 2018.

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