Doha, April 20, 2014. Qatar Railways Company (Qatar Rail), the company which is overseeing the construction of the much-anticipated integrated railway network, has awarded one of the largest ever single project tunneling and rail construction insurance policies to an six-member consortium of Qatari National Insurance Companies, led by Qatar Insurance Company (QIC), with additional capacity from international reinsurers and QFC registered insurers.
This is the most prestigious and the largest insurance program on infrastructure in Qatar and one of the largest risk covers related to railways ever placed in the world. The awarding of the contract came after Qatar Rail adopted owner controlled approach to insurance procurement.
The National Insurance Consortium will provide Construction All Risks and Third Party Liability insurance to Phase 1 of Doha Metro Project. The other five members of the consortium are Qatar General Insurance and Reinsurance Company, Al Khaleej Takaful Group, Doha Insurance Company, Qatar Islamic Insurance Company and Al Koot Insurance and Reinsurance Company. QFC-registered companies Doha Bank Assurance Company and SEIB Insurance and Reinsurance Company also participate on the program.
“We, at Qatar Rail, believe that a strong public private partnership (PPP) will further strengthen the domestic economy and our model translates Qatar National Vision 2030 into achievable actions through our projects that are essentially based on PPP.
The Doha Metro, which is being build in a phased manner, offers immense potential for private sector investments, particularly in the construction and operations and maintenance, across different development stages”, commented Engineer Abdullah Bin Abdulaziz Turki Al Subaie, the Managing Director of Qatar Rail.
“The significant participation by the local players in this major insurance program demonstrates the strength of the domestic risk cover market and their potential to make robust contribution towards the overall economic development of the State of Qatar, fully aligned to the Qatar National Vision 2030”, Eng. Saad Al Muhannadi CEO of Qatar Rail said.
“The Consortium of National Insurance Companies thanks the steering committee of Qatar Rail for their full support and trust in placing this prestigious project insurance through us. This support to the Qatari Companies and using their long history of professionalism and capabilities in the insurance field benefits the local economy. This also proves that the national insurance industry in Qatar has the capabilities to handle large scale projects of any size and complexity and provide services of highest standards to its clients”, said Mr. Ali S. Al Fadala, Senior Deputy Group CEO of QIC Group.
In total a majority (80%) of the risk is retained by domestic insurance companies. The lead reinsurer is, Liberty, (UK), and the broker appointed by Qatar Rail is Marsh.
Jon Marsh, Vice Chairman, Global Construction Practice, said, “Marsh take great pride in our appointment to this prestigious role, which is the beginning of a significant partnership and journey. We are also very pleased that we were able to achieve the result in support of Qatar’s economy using our global expertise delivered locally.” Prasad Aniyil, CEO Marsh Qatar observed, “It was yet another opportunity for Marsh to demonstrate our commitment to Qatar, its insurance market and the Qatar National Vision 2030.”
The 231 km Doha Metro forms an integral part of Qatar’s overall railway network and will rank among the most modern and advanced integrated railways network in the world. It is to be executed in twin stages with the Phase 1 involving the 131 km and 48 stations (underground 63 km, elevated 48 km and at grade 20 km. the Phase 2 will see the construction of 100 km(underground 37 km, elevated 53 and at grade 10 km) with 44 stations.