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Dubai RTA to spend $5.45bn over four years
RTA, which has already spent AED55 billion in the past five years, is going to create public-private partnerships to fund projects.
May 17, 2011 10:34 by Reuters
Dubai’s Road and Transport Authority will spend about AED20 billion ($5.45 billion) in the coming four years to fund projects but is not considering a hike in toll charges, an official said on Tuesday.
The RTA, which has spent more than AED55 billion in the past five years, will look to create public-private partnerships to fund projects, said Abdul Mohsin Ibrahmi Younes, chief executive for strategy and corporate governance.
Younes said higher charges for its Salik electronic toll collection system or creating new toll gates would not be an option to raise money for any future developments.
“Salik is not done to fund future projects but to control the traffic conditions,” he said, adding if toll fares were raised, it would be to address changes related to the flow of traffic in the emirate.
In April, the government said it had hired local and international banks to raise $800 million by securitising road toll receipts and will use the proceeds to fund infrastructure projects in the Gulf emirate.
Younes said the RTA expected its new tram system for Dubai to be completed by 2014. The tram system, valued at 3.2 billion dirhams, has been 30 percent completed.
The RTA also expected the green line of Dubai’s metro to be completed by September. The 23 kilometre line was originally slated to open in April 2010. (Reporting by Praveen Menon; Writing by Shaheen Pasha; Editing by Dan Lalor) ($1 = 3.672 UAE dirhams)