Home / Dubai says it may be more flexible on Metro funding

Dubai says it may be more flexible on Metro funding

One consortium drops out of the race leaving four in the field

The Dubai Municipality has indicated to the front-runners for the Dubai Metro project that it may be willing to finance the project if the preferred bidder so requires. It had earlier said that the main contractor would have to pay for 90% of the project and then be paid back by the government.

“The Dubai Municipality has indicated to us that the financial package is now not linked to the technical bids,” a source at one of the bidders told Construction Week. “They have told us that they may be willing to finance the project.”

It is also understood that there are now only four consortia in the running from the original five that were shortlisted. The venture led by France’s Vinci is reported to have pulled out. The consortium had included Hochtief of Germany, CCIC of the UAE and Ansaldo of Italy.

The bidders left in the running include Dubai Star, whose members are Belfinger Berger (Germany), Alstom (France), Taisei Corporation (Japan), Al Habtoor Engineering (UAE), Orascom Construction Industries (Egypt) and Besix (UAE), as well as Metro One, whose members are Bombardier (Canada), Odebrecht (Brazil), Arabtec (UAE), Parsons (USA), Guris (Turkey) and Ghella (Italy). Obayashi (Japan), Yapi Merkesi (Turkey) and Mitsubishi (Japan) form another group; and Saudi bin Ladin Group (Saudi Arabia) and Diwidag and Siemens of Germany make up the fourth bidder.

At a meeting of the Higher Committee for the LRT project, chairman Qassim Sultan, director general of Dubai Municipality, stressed that the project would be completed within the scheduled time as it is well on track. “There is effective co-ordination between the LRT team and top builders in the emirate so as to ensure a smooth implementation of the project as well as all other major ongoing projects,” he said.

He said the LRT project’s technical team is getting ready to award the contract for its electro-mechanical works soon. “The offers are currently being evaluated and the results will be announced soon.”

The offers for underground civil works have been received while the offers for above ground civil works are to be received by 31st January. The LRT project has been divided into two main segments, centred around the electromechanical works, including the supply of rolling stock; and the civil works, including construction of tunnels and bridges.

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