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Sun 30 Aug 2009 01:42 PM

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Dubai Metro cost set to rise by over $3bn

UPDATE 1: Dubai transport chief admits construction costs may increase from $4.2bn to $7.6bn.

The cost of building Dubai's long-awaited metro system is expected to rise by 75 percent to $7.6bn since the contracts were awarded four years ago, it was revealed on Sunday.

Among the reasons for the jump in costs was two extensions of the Green Line, which included five stations and a depot, two stations on the Red Line and a reworked design of all stations and their footbridges.

The Dubai Government has guaranteed the financing of the project, RTA chairman Mattar Al Tayer told reporters at a press conference.

The announcement follows a report last week quoting him as saying the cost of the project had increased by billions of dirhams since the AED15.5bn ($4.2bn) contract for the Red and Green Lines was awarded in 2005.

Al Tayer said the construction cost increase ran into billions but he did not reveal the exact figure, adding that it would be announced after the project had been finished.

More than half of the project has changed in terms of its design and facilities since its inception to cope with the growing needs of the city, Al Tayer added.

Earlier on Sunday, Al Tayer announced that only 10 stations will be open when the Dubai Metro launches on September 9.

It was also revealed that Dubai ruler Sheikh Mohammed will officially inaugurate the Dubai Metro on the first day of operations.

The stations to open from day one will be: Rashidiya, Terminal 3, City Center, Al Rigga, Union Square, Khaleed bin al Waleed, Al Jaffiliya, DIFC, Mall of the Emirates and Nakheel Harbour and Tower.

Initially, 11 trains will run on the Red Line, Al Tayer said, adding that the Green Line was scheduled to open in June 2010, three months later than originally planned.

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Cihat 10 years ago

Congratulations to who has planned this project. He was accurate with an error margin of =-75% on a billion dollar project. This is a typical example of how construction projects have been planned here.

James 10 years ago

These Billion Dollar plus projects, especially the high profile ones, will always come under scrutiny and attract pedantic comments. If you look back to some of the world's major project over spends and overrunns, Channel Tunnel from England to France, Concorde, Sydney Opera House, Burj Al Arab, etc etc. Clear examples of this in the more traditional management sense of costing more and taking more time to complete, yes technically failures. However, in terms of real success factors in making a huge contribution to attracting tourists and being world landmarks of man's achievements. The London Underground is huge and is not without its ongoing integrity problems. What Dubai Metro need to do now is have a concise Lessons Learned workshop to clearly identify all the mistakes, document them and learn from them. This should not be a witchhunt to aportion blame but an holistic learning curve. Good luck for the inauguration and safe travels.

Jebel Ali Baba 10 years ago

3 Billion Dollars only? That's two Burj Al Arabs or one Emirates Palace only. Crazy money spending is quite common in this country. And most of the times its not the value, but bad project management, changing client demands and bribery what makes it so expensive. The price however we have to pay at least.

Helen 10 years ago

Hey give them some slack here. The price of everything is getting excruciating since the start of the Metro project so what they have to adjust the budget accordingly. Ok the figure is a little bit higher and their ambition is. I love that and they did it. I’ve a lot of things I don’t like about RTA specially how they handle the Taxi drivers but this one is great. Congratulation. I will be the first to try the Metro it is historic.

Abdullah 10 years ago

I can not bleave this statment the cost of the project arround 12 to 13 Billion Only why they say 28 Billion? they double the cost always for which reasons I dont know.!!!!!!!