Saudi signs $8.2 bln rail deal with Al-Shoula consortium of Spanish group

Saudi Arabia signed a contract worth 30.8 billion riyals ($8.2 billion) on Saturday with a Spanish consortium to build a high- speed railway connecting Islam's holiest cities, Mecca and Medina, with the port city of Jeddah.

Saudi Finance Minister Ibrahim Alassaf and Transportation Minister Jobarah al-Suraisry signed the agreement with Spanish Foreign Minister Jose Manuel Garcia-Margallo and Public Works Minister Ana Pastor.

Al-Shoula consortium, which comprises Spanish companies including ADIF, RENFE and Talgo, won the project last year after a long bidding process in which it competed with a French-led group.

The contract is for the second phase of the project involving track laying, electrification, operations and maintenance.