Union Oasis to be developed above the underground station where the Dubai Metro Red and Green lines meet
Dubais Roads & Transport Authority (RTA) is engaged in final negotiations with local Al-Shafar General Contracting (ASGC) for the contract to design, finance, build and maintain the Dubai Union Oasis, the emirates first transit-oriented development to be procured based on a public-private partnership (PPP) model.
MEED reported in June that negotiations were progressing, based on sources close to the project.
Five companies submitted an offer for the PPP project, which is to be developed on a land above the underground station where the Dubai Metro Red and Green lines meet near Al-Nasr Square in Deira.
It is part of a wider plan to regenerate the Deira area, which lies at the heart of old Dubai, as well as encourage more people to use public transport.
Prior to the final prequalification deadline in 2016, RTA integrated a minimum revenue guarantee to the financial structure of the project to relieve the selected developer of the burden of paying a fixed base payment against investing in the project and make it more attractive to investors and developers.
UK-based consultancy EY completed the feasibility study for the Dubai Union Oasis in 2012 and is the transaction adviser.
The firm has teamed up with Faithful+Gould, also of the UK, as technical consultant, and with Trowers & Hamlins for legal consultancy.
Union Oasis will be the second project to be awarded under the auspices of Dubais newly implemented PPP law.
In May last year, Dubai Courts appointed Park Line for the $80m contract to convert a portion of the car park at the Dubai Courts premises into an integrated development that would include two buildings, one to house the Supreme Courts and cater to commercial and retail establishments, and the other to comprise a multi-level car park equipped with robotic car parking technology.
Park Line, a special purpose vehicle (SPV) created by the Dubai subsidiary of Indias IL&FS Transportation Networks Limited (ITNL) and Next Generation Parking (NGP) of Saudi Arabia, will deliver the project on a design, build, finance, operate and transfer (DBFOT) basis.
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