City law firm to advise Kuwaiti government body on tender process for first public railway

Ashurst has picked up a key mandate to advise on the creation of Kuwait's first-ever public railway system.

The top 10 City firm is advising new government body, the Partnership Technical Bureau (PTB), as it manages the tender process for the new Kuwait Metropolitan Transportation System, which is expected to cost at least $6bn (£3.8bn).

Ashurst's Dubai managing partner Joss Dare is leading the firm's team alongside City energy, transport and infrastructure partner Lee McDonald. The firm was appointed over the summer, with Ernst & Young also selected to advise PTB in relation to the project, led by London-based director of infrastructure advisory Gianluca Favaloro. Engineering and design consultancy Atkins is advising PTB on the technical aspects of the construction.

The introduction of a railway in Kuwait has been talked about for more than 30 years but is now set to be implemented using Kuwait's new public-private partnership laws. The initial focus will be on reviewing design options for the project, with one option involving the creation of a two-line system, which would cost around $6bn (£3.8bn), and another involving four metro lines at an estimated cost of around $12bn (£7.5bn).

Dare said: "This is an important project for Kuwait as it will be the country's first railway project. It is important for Ashurst because it cements†our position as the leading rail legal adviser in the Middle East.

"We've been involved in all of the region's significant rail projects to date, including Dubai Metro, Mecca Metro, Palm Jumeirah in Dubai and the Haramain High Speed Rail Link in the Kingdom of Saudi Arabia.

"We expect to see more rail projects rolled out across the region in the coming years," he added.

The project is expected to include the launch of an initial public offering in Kuwait for shares in 50% of the railway.