A consortium including London-headquartered public transport operator National Express has been named as the preferred bidder for Saudi Arabia’s first bus rapid transit (BRT) PPP, according to a source close to the process.

National Express partnered with Jeddah-based transport services firm Hafil when it bid for the design, build, finance, operate and maintain (DBFOM) contract for the 64 km Madinah BRT project in December 2024, as previously reported by Infralogic.

The contract, whose total cost has not been disclosed, includes a two-year construction period and 10 years O&M, the source told Infralogic, adding that the project is expected to be almost 80% funded by debt, with equity contributions from the developers accounting for the rest.

The preferred bidder letter was issued to the National Express and Hafil tie-up on 7 June, the source said.

It is the first such contract that will likely be awarded to the UK-based transport operator in Saudi Arabia, although the company has previously won, along with a Bahraini partner, a 10-year contract to operate and maintain the island-state’s public transport network through its subsidiary, NX Bahrain Bus Company.

London-listed National Express Group changed its name to Mobico Group in 2023, although it continues to use the National Express brand on its buses.

A team comprising French public transport firm RATP Dev and Riyadh-based Saudi Arabia Public Transport Company (Saptco) was named as the first reserved bidder for the Madinah BRT contract, while a team comprising France’s Transdev Group and the local contracting firm Nesma & Partners, is the second reserved bidder, the source added.

The rankings imply that the first reserved bidder will get a chance to win the contract if the final negotiation with the preferred bidder fails, with the same process applying for the second reserved bidder, the source noted.

Located in the pilgrim city in western Saudi Arabia, the Madinah BRT scheme involves financing and procuring depots, buses, and intelligent transportation systems (ITS), as well as the bus fleet’s operation and maintenance. The PPP has an estimated capacity of 1,800 passengers an hour.

Madinah Regional Development Authority (MDA) though the procuring authority, National Center for Privatization and PPP (NCP), prequalified three consortia and seven individual companies that could bid for the project in October 2023.

The project involves three public transport corridors spanning over 64km, 46 bus stations, six park-and-ride facilities and additional feeder bus networks that connect to the main BRT from surrounding areas.

The winning bidder will be responsible for financing, designing and building the depots; financing and procuring the bus fleet and the ITS; and operating and maintaining the BRT lines.

MDA, which is being advised on the deal by a transaction advisory team led by Deloitte, will execute and deliver the civil works on the project, including the bus lanes, tunnels, bridges, and viaducts.

National Express declined to comment, while NCP, MDA, Hafil, Saptco, Deloitte, Transdev Group, Nesma & Partners, and RATP Dev did not respond to requests for comment.