Dubai RTA to spend USD 5 billion on projects

Reuters reported that Dubai's Road and Transport Authority will spend about UAE 20 billion in the coming 4 years to fund projects but is not considering a hike in toll charges.

Mr Abdul Mohsin Ibrahmi Younes CEO of for strategy and corporate governance said that the RTA, which has spent more than 55 billion dirhams in the past 5 years, will look to create public-private partnerships to fund projects.

Mr Younes said that 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. 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 that it had hired local and international banks to raise USD 800 million by securitizing road toll receipts and will use the proceeds to fund infrastructure projects in the Gulf emirate.

Mr Younes said the RTA expected its new tram system for Dubai to be completed by 2014. The tram system valued at UAE 3.2 billion has been 30% completed. It also expected the green line of Dubai's metro to be completed by September. The 23 kilometers line was originally slated to open in April 2010.