Dubai's RTA seeks $2bn for 15km Metro expansion
The government agency, which has praised the advantages of PPP in the past, is likely to raise funds for the Metro extension through bank loans and export credit
Dubai's Roads and Transport Authority (RTA), which has previously touted the benefits of public-private partnerships (PPPs), is reportedly working to raise $2bn (AED7.3bn) for its Dubai Metro expansion plans.
The finances will be used to develop a 15km extension of the above-ground rail line to the Dubai Expo 2020 site.
According to Arabian Business, "RTA is in talks with banks and contractors to extend the line from the Nakheel Harbour and Tower Metro station to the Expo 2020 site located in the south of Dubai".
The report added all discussions regarding the transaction are currently private, and funding is likely to include bank loans and export credit.
In October 2015, an RTA official called for increased PPP projects to ease state funding and improve the quality of Dubai's transport projects.
Adrian Creed, projects partner at Clyde & Co, said: "As far back as 2011, the RTA issued a new ‘policy on public-private partnerships for transport and services’, launched an internal PPP committee, and then committed to model 30% of its projects on the basis of PPP procurement.
"Subsequent to that, the RTA produced an early discussion draft of a new PPP law in 2013, and in the last few months, it has engaged advisers to assist it in developing forms of PPP contracts and tender documentation for this new style of project," Creed added, writing in a comment piece for Construction Week.
"Given how far advanced the RTA is in developing a portfolio of PPP projects, we expect many of the early deals will come through this agency."