Doha Metro Railway Operator, Lusail Tram Railway Operator and Facilities Management for Metro and Tram

Qatar RailPrequalification Launch for Doha Metro and Lusail Tram

V6 Revised 31 Jan 2016

Agenda1. Introduction (10 mins)

Speaker: Abdulla Saif Alsulaiti, DirectorOperation & Maintenance2. Project Overview (10 mins)

Speaker: Raimund Hanauer, Transport Systems Manager

3. Procurement Strategy (15 mins)Speaker: Kaldoon Truman, Senior Director, Contracts & Procurement

4. Railway Operator (15 mins)Speaker: Frank Verhack, O&M Senior Manager – Metro & LRT

5. Facilities Management (10 mins)Speaker: Sean Derry, O&M Senior Manager – FM & Retail

6. Prequalification Process (10 mins)Speaker: Tatenda Mutsonziwa, Procurement Manager

7. Questions & Answers (30 mins)

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1. INTRODUCTION

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Speaker: Abdulla Saif Alsulaiti, Director, Operations & Maintenance

2. PROJECT OVERVIEW

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Speaker: Raimund Hanauer, Transport Systems Manager

Doha MetroKey features: GoA 4 fully automated and unattended

train operation

Communication Based Train Control (CBTC)

100 kph operating speed on at‐grade andelevated sections

80 kph operating speed in tunnels

Each Line (Red / Gold / Green) operatedindependently, with dedicated light maintenance and washing facilities

One central OCC in the main depot in AlWakra

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Doha Metro (continued)Key statistics (2021):

Daily boardings (normal weekday)640,000

Daily passenger‐km3.1 million

Annual fleet‐km15.3 million

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Lusail Tram

Key features: Manually driven trams, driver

supported by ATP

70 kph maximum operatingspeed at‐grade and in tunnels

Priority at junctions

One central OCC in the depot

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Lusail Tram ‐ Phase 1a (Revenue Operations anticipated from 2018)

Lusail Tram (continued)Key statistics (2021):

Daily boardings (normal weekday) 50,000

Daily passenger‐km150,000

Annual fleet‐km2.1 million

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Lusail Tram ‐ Phase 1b (Revenue Operations anticipated from 2020)

3. PROCUREMENT STRATEGY

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Speaker: Kaldoon Truman, Senior Director, Contracts & Procurement

Commercial StrategyQatar Rail Commercial Strategy is to create individual revenue streams each wholly responsible for all aspects of the successful running of their respective stream.This awareness day is dedicated to the release of the Prequalification Process for the Operation & Facility Management for our first two revenue streams:

Doha Metro Railway

Lusail Tram Railway

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QATAR RAIL

Doha Metro Railway Operator

LusailTram 

Railway Operator

Packaging StrategyThe Railway Operators will be wholly responsible for the performance of their respective railways and will manage the following key contracts:

Maintenance contract for the Systems, Rolling Stock and Trackwork (SRSTW)

Maintenance of other assets

Facilities Management contract(s)

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QATAR RAIL

Doha Metro Railway Operator

LusailTram 

Railway Operator

SRSTW

Metro FM 1

Assets

Metro FM n

SRSTW

Tram FM 1

Assets

Tram FM n

PrequalificationThis Prequalification process is for contracts yet to be tendered. They are:

Doha Metro Railway Operator

Lusail Tram Railway Operator

Facilities Management for theDoha Metro

Facilities Management for theLusail Tram

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QATAR RAIL

Doha Metro Railway Operator

LusailTram 

Railway Operator

SRSTW

Tram FM 1

Assets

Tram FM n

SRSTW

Metro FM 1

Assets

Metro FM n

Local Participation

It is the objective of Qatar Rail to drive local industry participation and knowledge transfer as part of the Railway Operator and Facilities Management contracts.

During the tender process bidders will be required to propose their Local Industry Participation Plan and all related information, including the list of services that are to be supplied as Qatari industry local content.

Bids will be assessed on the value these plans will provide to Qatar and bidders are encouraged to deliver world‐class local content proposals which show a clear and measurable enhancement of Qatari industry and skills.

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4. RAILWAY OPERATOR

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Speaker: Frank Verhack, O&M Senior Manager – Metro & LRT

Railway Operator (Metro and Tram)Contract principles A 20 year term, with Employer break options on 5th, 10th, and 15th

year of term Payment terms linked to the Key Performance Indicators Operator to provide a Parent Company Guarantee Operator to provide a Performance Bond Local content and training/education requirements Employer’s right to, and Operator’s acceptance of, novation of FM

Contracts to Operator

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Railway Operator (Metro and Tram)Possible Key Performance indicators

Service regularity

Service punctuality

Service availability

Customer satisfaction

Cleanliness

Equipment operational availability

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Doha Metro Railway OperatorPre‐operations Hire and mobilize all required staff

Participate in the training delivered by the System Contractor

Cascade this training to the whole staff according to their positions

Develop all plans, procedures and standards related to Operation and Maintenance

Participate to the testing and commissioning activities and provide adequate resources

Participate to the trial run and provide adequate resources

Operate the trial operation

Support Qatar Rail in all pre‐operation activities as required

Ensure a successful start of Revenue Service

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Doha Metro Railway Operator (continued)Operations Operate the Metro services according to the timetables and Qatar Rail 

requirements

Manage the Maintenance contracts novated by Qatar Rail (Rail systems and other assets)

Maintain the assets not covered by the Maintenance contracts, according to Qatar Rail requirements

Manage the Facility Management contracts novated by Qatar Rail

Perform Customer Service activities including Customer information, tickets selling and ticket inspection

Report to Qatar Rail in terms of overall performance and quality of the services, including those performed by subcontractors

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Lusail Tram Railway OperatorPre‐operations Hire and mobilize all required staff

Participate to the training given by the Consortium

Cascade this training to the whole staff according to their positions

Develop all plans, procedures and standards related to Operation and Maintenance

Participate to the testing and commissioning activities and provide adequateresources

Participate to the trial run and provide adequate resources

Operate the trial operation

Support Qatar Rail in all pre‐operation activities as required

Ensure a successful start of Revenue Service

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Lusail Tram Railway Operator (continued)Operations Operate the Tram services according to the timetables and Qatar Rail 

requirements

Maintain the assets according to Qatar Rail requirements

Manage the Facility Management contracts novated by Qatar Rail

Perform Customer Service activities including Customer information, tickets selling and ticket inspection

Report to Qatar Rail in terms of overall performance and quality of the services, including those performed by subcontractors

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5. FACILITIES MANAGEMENT

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Speaker: Sean Derry, O&M Senior Manager – FM & Retail

Facilities ManagementContract principles A 20 year term, with Employer break options on 5th, 10th, and 15th year of term

Payment terms linked to the Key Performance Indicators

FM to provide a Parent Company Guarantee

FM to provide a Performance Bond

Option for Employer to novate the Contract to the Operator

Local content and training/education requirements

Possible key performance indicators Customer satisfaction

Cleanliness

Equipment operational availability

Front of house and landscaping maintenance

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Facilities Management (continued)Pre‐operations Develop FM SOPPs and produce rule book, station specific local work 

instructions 

Mobilize and Train staff 

Support during testing and commissioning;  receive validate and verify hand over documentation 

Develop HAZOP’s

Set up supply chain 

Cleaning inside and outside stations including landscaping

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Facilities Management (continued)Pre‐operations Day‐to‐day management of retail, food and beverage outlets including 

management of fit‐outs;

Management, cleaning, inspection and maintenance (level 1 and 2) of park and ride;

Cleaning, inspection and maintenance (level 1 and 2) of architectural finishes, landscaping and “back of house” rooms;

Cleaning, inspection and maintenance (level 1 and 2) of station civil structures and equipment (non‐safety related);

Waste management and pest control.

Receive and maintain stations from handover to opening 

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Facilities Management (continued)Operations Day‐to‐day management of; 

the supply chain  Cleaning inside and outside stations including landscaping; retail, food and beverage outlets including management of fit‐outs; cleaning, inspection and maintenance  (level 1 and 2) of park and ride; Cleaning, inspection and maintenance of architectural finishes and “back of 

house” rooms; Cleaning, inspection and maintenance  (level 1 and 2) of station civil 

structures and equipment (non‐safety related); Waste management and pest control.

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6. PREQUALIFICATION PROCESS

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Speaker: Tatenda Mutsonziwa, Procurement Manager

Evaluation criteriaSpecific for Railway Operator Recent experience operating Metro or Tram over a set minimum

ridership Experience undertaking or managing infrastructure, systems, rolling

stock and trackwork maintenance Experience outside country of registration and in launching a new line or

extensionSpecific for Facilities Management Recent experience providing multi‐disciplinary facilities, properties and

estates management Experience undertaking or managing building, mechanical, electrical and

plumbing maintenance Experience bringing into use new facilities and management of

handover of buildings

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Indicative dates

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STAGE Facilities Management for Metro and Tram

Railway Operators for Metro and Tram

Issue prequalification Thu 14 May 2015 Thu 14 May 2015

Return application Thu 25 Jun 2015 Thu 25 Jun 2015

Complete evaluation Q3 2015 Q3 2015

Float tender Q1 2016 Q2 2016Anticipated contract award Q1 2017 Q2 2017

Next steps

You will receive a link to this presentation along with theanswers to any questions raised in the Q&A session.

You will receive a link to the Prequalification Document(s)which consists of:

Prequalification Application; and Briefing Document.

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7. QUESTIONS & ANSWERS

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The following questions and answers are a comprehensive account of ALL the Q&A’s raised and responded to during the session.

1. I do not think that the international or the local companies you are considering will bequalified for what you want. The local companies don’t have experience in railways and theinternational companies don’t have experience of working in Qatar. What I recommend isthat Qatar Rail encourages international companies interested in contracting in rail shouldjoin with the local companies to form joint ventures combining the knowledge ofinternational experience with local knowledge. To do this we need to give them enough time.Also, don’t you think that land should be set aside for accommodation for the operators. Ifthis is not done we may find that the high cost of land may be passed through to Qatar Rail. Itmay be better for Qatar Rail to provide land for this to happen in order to control the costs.

• This is not he first presentation that we having given on the operations subject, this is the 3rdsession and we have been doing this for a year now. You might also have noticed that we saidthat facilities management part will be procured directly by Qatar Rail and will be novated underthe rail operator.

• We appreciate that nobody in Qatar is going to have the experience of the internationaloperator. So it is a given that the rail operator will be foreign. Most rail operators would prefer tocontract for the whole operation, including facilities management (FM) and rail maintenance.Our higher management has elected to separate FM contracts because it they recognise thatlocal companies here in Qatar are already successfully offering FM services to shopping malls,city center hospitals, etc. What the local companies do not have is experience in FM servicesspecific to the rail operating environment. For that reason we have decided that Qatar Railshould contract the FM directly. This will ensure that the Qatar market will directly benefit fromthe increased economic activity. The FM will then be novated under the rail operator, forcingthem to manage the local Qatari companies, eventually turning them into very successful,efficient facility management subcontractors for the kind of railway that Qatar wishes to have.We have thought about this and this is why we created this contracting structure.

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2. How is the rail operator going to manage the maintenance contract, whichhas already been given to Mitsubishi as Systems contractor?

• For Doha Metro the maintenance of the systems assets will be novated to the railoperator, once the rail operating concession is granted. The maintenance contractfor the systems assets has been granted to a consortium led by Mitsubishi HeavyIndustries (MHI), comprising MHI, Kinki Sharyo, Hitachi and Thales. The novationprinciple is that the rail operator, being a seasoned and experienced rail operatorwho is competent to manage the maintenance of rail assets, will manage themaintenance contract. The maintenance contractors have their own contract KPI’sand so it is not in the interest of the system maintenance contractor to performbadly. In addition to this, the rail operator, who will be contracted directly to QatarRail, has KPIs for the train service and so they are incentivised to achieve highperforming assets through the systems maintenance contractor.

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3. Does the rail operator have rights in respect of maintenance in the contracthe has with Qatar Rail, or rights in the maintenance contracts which areparallel with its own?• No the rail operation and maintenance contracts are not parallel. After the successful

pre‐qualification for the rail operation contract, Qatar Rail will release the railoperations tender documents to the tenderers and this will include the informationon all the contracts to be novated to the rail operator.

• Each of the contracts to be novated to the rail operator has its own suite of KPIs, andtheir own asset maintenance regimes. The tenderers will have to assess thesecontracts and decide on your strategy to manage and control the novated contracts.The tenderers will need to assess the risks associated with the contracts and pricethat risk accordingly. Wherever you go, you will see similar contracting structuresexisting .

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4. If you are pre‐qualifying for the rail operations or FM contracts as aninternational operator, do we need to achieve a JV with a local company forpre‐qualification?• When we pre‐qualify any company, we pre‐qualify them based on their demonstrable

experience and references. So we are pre‐qualifying the company that is going to dothe job. In your case, if you are a serious bidder, you need demonstrate you have thecredentials to do the job we need you to do and we will pre‐qualify you.

5. Are you expecting the rail operator to take the risk on rail ticketrevenue or is Qatar Rail going to take the revenue risk?

• No, the operator doesn’t take the risk on the revenue, Qatar Rail does, but he isresponsible for making sure that everything runs smoothly and that the revenue iscollected.

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6. You have talked about KPIs and payments linked to achievement of KPIs. KPIfinancial penalties can be high risk for contractors in the rail environment. Soare you talking about total financial payments linked to achievement of KPIs orfees linked to KPIs?

• The rail operator will receive a basic fee linked to the delivery of the train service andtimetable in existence at the time of contract award. The rail operator will have todeliver the timetable to a specified number of train kilometers. There will be a paymentmechanism to allow for the fee to be adjusted according to changes in the timetablebecause we will not keep the same timetables for 20 years. This payment will be thebase fee and then the KPI payments will be overlaid on that basic fee.

• The maintenance contract for the systems is also for 20 years with a 5 year breakoption. So the way you’re going to present your tender is not going to be that difficult.You may have the same subcontractor half way through your contract this may change.We have thought about this and basically when you see the tender document and yousee the terms and conditions for all the maintenance contracts, you will find that theyfit together quite well.

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7. In whose scope of work is the technology and the security systems? Is it withthe rail operator or directly with Qatar Rail? Such as CCTV and access controlor hazard technology signals?

• The facility manager will run the stations and so they will ensure that everything isrunning safely and smoothly in the station. The rail operator will have overallaccountability for the safety and security of operations on all of the railway. Forexample, we have some security staff in the stations and they will be hired andmanaged by the facility manager. If we have a rail incident, or if we need to controlcrowds, the FM staff will be used by the railway operator to assist at stations. Ofcourse the railway operator will have train the FM staff, but when it comes to safety, itcomes under the responsibility of the operator.

• We are still finalising this element of the contract structure, but this is the basicprinciple.

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8. To be clear, I’m talking about the security equipment’s procurement,installation and testing. For example, for CCTV Cameras.

• If you’re talking about the procurement of the equipment, this was discussed in thismorning’s session. We have contractors designing and building the Metro and LRT andthis type of equipment will be purchased through them. Procurement of this type ofequipment does not go through the operator, or the FM.

• As a facility management contractor or rail operator, you will be operating andmaintaining a completed and tested railway. You will be maintaining the equipmentthat is already there. You will not be installing anything. The installation, testing andcommissioning is being conducted by the design and build contractors who arebuilding the railway.

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9. There will be several different contractors who will be carrying out testing andcommissioning and handover of assets with supporting documentation. HasQatar Rail put procedures in place to ensure that there is somestandardisation across all the contracts. The incoming rail operator and FMsuppliers could find it very challenging to have to deal with handoverdocuments produced in different ways, test certificates produced in differentways, etc., Does Qatar Rail plan to standardise this?

• Qatar Rail is recruiting and embedding Quality Managers within each civil contract toensure that the FM contractor receives the correct documentation on Handover to theoperations phase.

• For each Metro line, there is a civils contractor who is responsible for the delivery ofthat infrastructure project. We also have a systems contractor installing the systemsassets within or on the civils assets. We have a civil contractor for each Metro line butwe have one systems provider for the Metro network. When we get to the handoverphase, obviously the civil contractor and the systems contractor will have to bepresent. Assisting Qatar Rail in this phase will be the Project Management Consultants(PMCs) associated with each of the build contracts. We want the rail operator and FMcontractors to be engaged with us before handover and to assist with this phase. Thiswill be an opportunity for you to familiarize yourself with the system so that when welaunch the train service you will be comfortable with what is expected of you.

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• Regarding Asset Management, Qatar Rail is the owner of all the assets. Qatar Rail isimposing a unique maintenance management system and this means all thecontractors who are currently building and installing equipment on the metro and LRTwill be putting asset data into Qatar Rail’s maintenance management system (MMS)in a common coding structure. The MMS will be advised to the rail operator and FMsuppliers and they will be expected to use the system to plan their maintenance andupdate the system with the information on completed work. This will enable QatarRail to know exactly the status of the maintenance on each asset and will also easethe handover of this equipment to the next maintenance contractor. Qatar Rail is verykeen on having a high level of standardization on all management systems on thenetwork

• This is a world class project using common codification and we are making full use ofBIM, linked to a robust MMS. All these details are going to be in the end state tenderand not the pre‐qualification. The focus of the moment is the pre‐qualification. Allthese questions and the Qatar Rail requirements of the unique systems will be in theend state tender.

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10. One of the speakers mentioned transfer of knowledge from theinternational companies to nationals of Qatar. Will you have arequirement in the contract to appoint a percentage of Qatari nationalsinto key positions after 3 or 4 years?

• This is a very important subject. The tender will include a requirement for the bidderto demonstrate a strategy for Qatarisation, which is the appointment of Qatarinationals into key roles. There will be percentages stated in the tender documentsand KPIs to measure achievement. Qatar Rail will expect the bidders to demonstratethat their proposals for Qatarisation meet the requirements of the tender documentsand that they can and will be achieved.

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11. There is a Shadow Operator in place now for this project, can the ShadowOperator bid for the operations and maintenance contracts?

• The contract of the Shadow Operator will end at the end of December this year. Thetender for the rail operations and FM will be floated at the beginning of next year andso there will be no conflict of interest in the Shadow Operator bidding for theoperations contract. We have two Shadow Operators; one for Metro & LRT and onefor Long Distance. So there will be no conflict of interest between the company as ashadow operator and the company as a bidder. So yes, they are also allowed to bid.

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12. How will Qatar Rail ensure the timely payment for the Facility Managementcontractor? Secondly, if the Facilities Management contractor is not able tomaintain the facility as per the required KPI, what will be the role of theoperator? Can he introduce his own manpower to maintain this facility?

• The contract will define all of this. It’s not possible to discuss every little detail aboutthe contract KPIs. Also, we will soon be preparing the tender documents and all thesethings will be addressed in the tender document. The purpose of today’s event is tobring to your notice that we are going to start a pre‐qualification process. There willbe some more information within the prequalification application form of what isexpected, especially with FM. There will be more information in the application formthat will describe what is expected of FM suppliers and what services they will berequired to provide, including what equipment you will be maintaining. We areunable to give you a list but there will be some information in the PQ document andthere will be a huge amount of information in the tender document.

• There will be a payment regime within the contract. There will be dates andtimescales by when suppliers will be paid and details of how the KPIs will beimplemented and dealt with under the contract. You have to wait at this stage. If aconflict arises there will be an escalation process within the contract.

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13. Can we have an idea about the scale of the FM packages, like how manystations will be in each package and overall how many packages there willbe?

• There will be information in the prequalification (PQ) document. Basically, for themetro we have 36 stations. We envisage we will break this down into 4 or 5packages. But we also need to assess the market in this PQ process. We need to seewhat the supplier market can achieve, for example, how many stations the market iscapable of managing, is it 10 or is it 5? At this point of time we envisage 4 FMoperators for the metro.

• In terms of the scale, there are 34 station in the LRT network, as was stated in thepresentation this morning. Most are above ground, but are below ground andgenerally smaller than the Metro stations. The metro is a larger scale, with 36stations and these are bigger that the LRT stations and will contain retail food andbeverage outlets. We are offering a large scale package to the supply market.

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14. Question on KPI payment or the KPI deduction: Is there any cap on the KPIdeduction in the fees paid to the rail operator? Second, will any incentivesbe paid to the rail operator to exceed the KPI targets?

• The complete mechanism of the KPIs will be described in the contract documents.This contract will be no different from many other railway contract franchises, wherethe KPI penalties are capped.

15. Speaking about supporting the local market the Qatari Companies. There area lot of opportunities for subcontractors. To what extent can Qatar Raildictate which company gets which contract especially if there are a lot of keyplayers in the market and they’re dominating ‐ about services in FMspecifically in consultancy services for environment?

• We are currently going through a pre‐qualification process. The pre‐qualifiedcandidates will be announced by the end of this year. There will be opportunities forlocal sub contractors and suppliers to address these future candidates for any subcontract work. I would advise that local service providers should remain aware of thepre‐qualified candidates for FM and O & M and then when they are announced to goand see them and propose your services. We will probably in our tender, ask for thetenderer to name their main subcontractors, but we will probably not impose them.So my advice to you is to wait for the pre‐qualification results and to go and seethese pre‐qualified candidates and propose your services to them.

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16. There is a requirement for the rail operator to have undertaken a roleoutside their country of registration and experience in launching a new lineextension. Is it necessary to have launched a new line outside the country ofregistration, or is not important?

• No, its not important. As long as you have experience of bringing a new railway intouse, extended or completely new in your own country, this will be acceptable.

17. What kind of experience is required outside of the country of registration?

• The same kind of experience required to operate bring the new lines into operationand operate metros and trams like the ones on offer in Qatar.

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18. All contractors will be monitored by the rail operator. In the FM, why are younot having the separate hard FM & soft FM suppliers, then you will havemore control and you can avoid more subcontractors with double contracts?

• What Qatar Rail wants to avoid is getting into a complicated fault attribution processbetween FM suppliers and the rail operator. So by getting the rail operator tomanage the FM and maintenance contractors we will avoid this situation and QatarRail only needs to deal with one supplier directly.

19. Does Qatar Rail expect suppliers to bid in joint ventures or is Qatar Railplacing any restrictions on suppliers bidding in joint ventures? If a supplierbid as a joint venture, would you expect one application for joint venture orindividual applications?• There is no problem with suppliers forming joint ventures to bid for rail contracts. In

fact we encourage small Qatari companies to form joint ventures. If for example theyhave only experience with one particular FM discipline, they can get together withother complimentary companies to bid for FM contracts. After this session we willbe sending you details of which companies attended in this session and what theydo. In terms of JV, the only restriction here is that we do not accept newlyincorporated JVs. If you come as a JV of a 2‐3 small companies, you as a group areresponsible with joint and several liabilities and each one of you will be signing thecontract.

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20. As the contract will run for 20 years. How will you deal with line extensionsand phase 2 of Metro?

• The next phases of the Metro and the Tram will fall within the term of the 20 yearcontract. That means the rail operator will have to maintain a very high level ofservice during the extension work. The rail operator is also likely to be an advisor toQatar Rail on the extension work. There will be a contractual mechanism to extendthe scope of work of the operator to these extensions because we do not intend tohave some part of lines to be operated by different operators. Don’t forget also, thatthere is a break point every 5 years and this means that the operator who wins thecontract this time might not be here in 5 years or in 10 years while the extension isgoing on.

21. Would you please define what do you mean by a Qatari Company and inparticular does this mean 100% owned by a Qatari? Or does it mean aninternational company registered in Qatar who is the normal ratio of Qatariownership of 49%‐51% is considered as a local company?

• Any international company with a contract in Qatar and must be registered in Qatar.Qatar has a commercial registration process for this. For a Facilities ManagementCompany, they are usually companies operating here in Qatar. If it is a Qatariregistered company then it is WLL Company. Basically, we expect FM contractors tobe Qatari companies. If the international operator wishes to bring or make asuggestion that in addition to the operations he also like to bid for the facilitymanagement, he can do so, but we will address the situation at that time.

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List of AttendeesAs announced during the 7th May 2015 Internal Awareness Day (IAD), Qatar Rail publishedthe full list of attendees to facilitate discussions between any attendees considering formingjoint ventures or consortia to deliver the full scope of service.

However, unsolicited communications on matters unrelated to the Qatar Rail, RailOperations and Facility Management Tenders have been received by some IAD attendees.We have therefore removed the full list of attendees from the Qatar Rail website.

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