Dubai RTA may consider PPP model for future rail projects
Friday, 23 Oct 2009
MEET reported that Dubai’s Roads & Transport Authority is planning to use private sector funding for future rail projects in the emirate.
Mr Abdulredha Hussain al Hassan director of planning and rail development of the RTA at an industry conference in Dubai said that “We originally looked at the private sector for the Red and Green lines. We are now ready to revisit those studies and opinions. We are ready to accept proposals and Dubai is ready to go into partnerships.”
He said that the authority plans to build 240 kilometers of rail lines and 250 kilometers of tram lines in Dubai.
Mr Al Hassan said that the RTA is considering several financing options but the most likely in current market conditions is a public and private partnership agreement. He added that the authority will make future rail projects more attractive to the private sector by giving them access to revenues from station naming rights, retail units at stations, nearby real estate developments and advertising.
On September 9th 2009, Dubai opened the first part of its new metro network, the Red Line. The Green Line will open in mid 2010. The 2 lines cost AED 28 billion to build. The metro network runs for about 75 kilometers.
