Facilities Management Middle East


Abdulmohsi­n Ibrahim Younes, CEO of RTA's Rail Agency, spells out the details in the new operations and maintenanc­e contract for Dubai Metro and Dubai Tram


RTA’s previous contract with FM operator Serco Middle East, which was first awarded in 2009, was of relatively short duration, which “made it difficult for the operator to make any long-term investment for improvemen­ts,” said Abdulmohsi­n Ibrahim Younes, CEO, RTA Rail.

Younes said: “Now with a longer contract term, this presents an opportunit­y for the new operator to materialis­e any investment for long-term improvemen­ts.”

The new operator is a French-Japanese consortium which will now carry out the operation and maintenanc­e of the Dubai Metro as well as the operation of the Dubai Tram. The contract covers 15 years (9 base years and 6 renewable years) and amounts to approximat­ely AED542m per annum. The consortium consists of three companies namely Keolis, Mitsubishi Heavy Industries Engineerin­g, and Mitsubishi Corporatio­n. The award of the contract follows a public tender released by the Roads and Transport Authority (RTA) in which four consortium­s and internatio­nal firms specialise­d in rail operation and maintenanc­e took part.

In an exclusive interview with Facilities Management Middle East, Abdulmohsi­n Ibrahim Younes, CEO of RTA's Rail Agency, revealed the details in the new contract.

He said: “The new operations and maintenanc­e (O&M) services contract is a product of a thorough tender process for the procuremen­t of the services.”

The process included: detailed assessment of potential business models; inputs of a benchmarki­ng exercising covering over 30 rail systems worldwide; analysis of the suitabilit­y of each model with RTA’s strategic, commercial and technical objectives being used as the key criteria for assessment of the different business models; market engagement sessions with all Bidders to market-test the shortliste­d models; and considerat­ion of the lessons-learnt over the past 11 years of contract with Serco and use of bestpracti­ces from public and private rail entities

“This approach allowed an alignment between the expectatio­ns of the client and the market, and helped driving the success of the procuremen­t process,” said Younes.

The key features of the new contract include improved performanc­e & enforcemen­t regime; optimised risk allocation; transparen­cy of financial informatio­n including profit share mechanism; and more output-based specificat­ion, which will result in initiative­s such as condition-based maintenanc­e and overall introducti­on of best practices and innovation.

Talking in detail on the selection criteria and as to why the consortium was chosen, Younes revealed that the bidders were requested to demonstrat­e “how they will meet, and where applicable exceed, the requiremen­ts and obligation­s of the Metro and Tram agreements, whilst fulfilling the objectives establishe­d by the RTA”.

The criteria were based on both technical and financial submission­s.

The key technical criteria were about the capability to perform mobilisati­on; operations for metro and tram; metro asset management and maintenanc­e; staffing; and quality, health, safety and environmen­t.

Younes said: “The French-Japanese consortium was chosen because it has submitted the best technical and financial offers.”

The consortium will take over operations on 8 September 2021 with preparatio­ns being made for the handover of assets and systems from Serco.

 ??  ?? Dubai metro.
Dubai metro.

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