Dubai launches first project under new PPP law

Dubai Courts and Park Line have signed a contract to develop the world’s largest automated car park facility, in what is the first project announced under Dubai’s Public Private Partnership (PPP) Law which was introduced in November by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Park Line is a joint venture between Next Generation Parking (NGP), a KBW Investments company, and ITNL Infrastructure Developers, a subsidiary of IL&FS Transportation Networks Limited (ITNL), India.

The 30-year Concession Agreement was signed today by His Excellency Taresh Eid Mohammad Al Mansouri, Director General of Dubai Courts, Ravi Sreehari, CEO for the Middle East and Africa region of ITNL, and Ahmed Alkhoshaibi, Group CEO of KBW Investments and Managing Director of NGP Limited.

The car park will be part of the redevelopment of Dubai Supreme Court which will have a built up area of 55,742 square metres and include construction of a new Supreme Court building that will house over 50 Supreme Court Judges, 18,600 square meters of office space and 3,154 square meters of retail. The project is scheduled for completion in 30 months.

The Dubai Supreme Court project will be the first government building with an automated car parking facility which will be located on part of the existing Court’s employee car park area, which currently houses 250 car parking spaces.

His Excellency Taresh Eid Mohammad Al Mansouri, Director General of Dubai Courts, said: “The Supreme Court project was launched with the blessing of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai – may God protect him – and upon the directives of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Chairman of the Judicial Council of Dubai, to provide a building servicing the Dubai Supreme Court as a judicial body and as an administrative body. The building shall provide a variety of features, such as trial rooms and a parking for the public, in order to promote the efficiency of judicial services.”

HRH Prince Khaled Bin Alwaleed bin Talal, founding Chairman of KBW Investments, said: “The Dubai Supreme Courts development, an expansive project that will be a hallmark achievement in NGP’s portfolio, demonstrates the UAE’s forward-thinking movement toward smart and sustainable building. KBW Investments takes pride in being at the forefront of technological advancements in UAE infrastructure.”

Issa Najieb Khoory, Chairman of Park Line said: “This Project would pave the way for future PPP Projects in the Emirate of Dubai and its successful implementation would set up a benchmark for developing infrastructure projects on Public Private Partnership basis. We will encourage more and more public authorities to adapt the PPP project structure as it removes the risks from the public sector to private companies.”

Mr. K. Ramchand, Managing Director, ITNL, and Chief Executive Officer, IL&FS said: “This is the culmination of a year-long effort between the proponents to arrive at a mutually beneficial partnership providing for a risk sharing mechanism acceptable to all stakeholders in such projects. As is observed all over the world, the success of the initial clutch of projects pave the way for expeditiously promoting PPP projects across various sectors of infrastructure.

“We congratulate the Government of Dubai in leading the way for the region to adopt such practices in the speedy implementation of Infrastructure projects using private capital.”