The cost of building Dubai Metro has soared by Dh12.5 billion due to major design changes and the extension of the network, a top official revealed yesterday.
The budget for the Red Line and Green Line was originally set at Dh15.5bn but the figure had since risen to Dh28bn, Mattar Al Tayer, Chairman of the Roads and Transport Authority (RTA), told Emirates Business. The cost of buying land and building additional stations had contributed to the increase.
Al Tayer said the finance for the project was guaranteed by Dubai Government and there would not be any problems with the funding.
"The project is totally financed by the government but you should not forget that RTA has income of its own," he said. "But the financing for the Metro is totally taken care of by the government and we are paying it back right on time.
"There are four main reasons why the budget for the construction of the Metro has increased. Firstly, the project was extended by several kilometres after the initial design was produced and the estimate made. On Al Nahda road we extended the Metro line by 4.5km from the junction of Terminal Two to Emirates Road, which involved the construction of four stations and a large depot.
"All this, including the depot, was not factored into the initial estimate. At that time the planning was not ready for Al Ghusais. We had to add land for the depot and extension, which cost us a lot of money."
The second reason for the increase, he said, was a series of changes made in Jedaf. "We added a station and added about three to four kilometres of line in Jedaf," he said. "Thirdly we also added two stations on the Red Line, one at the Mall of the Emirates and the other at Salahuddin Road.
"Finally, the interior design had to be changed drastically. The design changes also included the external shape of the stations and the footbridges. It is because of these extensive changes the cost of the project went up so drastically."
He said he wanted the Dubai Metro to be one of the best systems of its kind in the world for the next 10 years, in accordance with the instructions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Meanwhile, RTA has appointed international consultants to resolve disputes with a number of contractors. "It is not true that we have any major issue with any of the contractors," said Al Tayer.
"Dubai Metro is an international project and one should understand that it would not be possible for us to continue with the project without paying the contractors. I am surprised that people continue to doubt RTA's capability to pay the contractors."
However, he said measures were being implemented to resolve minor disputes. "It is normal to have disputes between contractors and clients with any major project. Additional works were requested and almost 60 per cent of the project had to be expanded. There were about 40 to 50 per cent changes in the design both internally and externally. Specifications had to be changed.
"There will definitely be additional demands from the contractors. We are dealing with very professional contractors and consultants and are approaching the issue professionally. We have appointed international consultants, including legal consultants, to resolve the disputes."
He said all efforts were being made to resolve the issues amicably, and added: "We are not keen on dragging the issues out. The consultants will be with us until the completion of the Metro project and all disputes will be resolved."
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