Dubai: RTA updates Union Oasis financial package
The PPP project's prequalification deadline has also been extended as RTA adds financial "enhancements" to improve Union Oasis's investor appeal
Dubai's Roads and Transport Authority (RTA) announced it has extended the submission deadline of prequalification documents for its Union Oasis project.
The new deadline for submitting documents for the design, construction, financing, operation, and maintenance of the project is Sunday, 28 February.
RTA said it has introduced "extensive and significant financial enhancements" to the project's investment structure as well.
Abdul Mohsen Ibrahim Younes, CEO of RTA's Rail Agency, remarked: "RTA is keen on ensuring resiliency in dealing with developers and investors by adding new design techniques and models for the financial and contractual structures of the project to enhance its appeal to investors."
The agency will offer a miinimum revenue guarantee to the selected developer.
"Thus, the private developer is no longer required to pay fixed-base payment against investing in the project, under certain cases and provisions," Younes explained.
Union Oasis marks the RTA's foray into public-private partnership (PPP) projects.
The project, which was formerly a public park, will offer mixed development that will include recreational facilities and green areas, residential apartments, commercial spaces as well as retail outlets.
The facility will have direct access to a metro station served by both red and green lines, and is touted as the Emirate's first Transit-Oriented Development (TOD), since it will link all modes of transport in the city.
RTA's decision to extend the prequalification deadline and improve Union Oasis's financial package was based on "extensive market sounding, and discussing the commercial principles" of the project, he added.