Sydney - Tuesday - November 18: (RWE Australian Business News) - Asciano Group (ASX:AIO) today reported the Supreme Economic Council of the Kingdom of Saudi Arabia had directed that a 're-bid' process take place for the Saudi Landbridge project whereby all four of the original shortlisted bidders would be given the opportunity to submit revised proposals in respect of the project. Asciano says it understands the key driver of this decision is the recent global economic uncertainty and the volatility in global credit and commodity markets, and the council's desire to ensure that these changed global circumstances are reflected in the tender process. On April 21 Asciano announced that the Tarabot Consortium, of which Asciano is a member, had been selected as preferred bidder for the project. Asciano's role in the consortium includes holding a 5pc equity stake in the concession vehicle, in addition to being a significant shareholder in the operations and maintenance business, and the provider of key operational services to the consortium. Following its selection as preferred bidder, the Tarabot Consortium had been engaged in discussions with the Kingdom of Saudi Arabia and its agencies and advisers to finalise key project documents. Asciano chief executive and managing director Mr Mark Rowsthorn said today, "We are obviously disappointed with the decision to re-bid the project, given Tarabot's selection as preferred bidder. "We are currently in active discussions with our Tarabot partners, and are seeking further clarification from the Saudi authorities. Once all relevant information is at hand, Asciano will consider its position in respect of the project."
AIO Price at posting:
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