The challenge
As the original operations and maintenance contracts for Dubai's Metro and Tram network approached expiry in 2021, the Roads and Transport Authority (RTA) needed to decide how future operations and maintenance should be procured and structured. Rather than simply renew the existing arrangement, the RTA wanted to review its business model against international practice and secure a contract that transferred more financial risk to the operator, incorporated innovative commercial features benchmarked internationally, and could secure board-level approval before being tested in the market.
How we helped
Acting as financial adviser within a consortium led by Atkins, we reviewed the RTA's existing operations and maintenance business model, benchmarked international practice, and recommended a different contract form with greater financial risk transfer and innovative commercial features, securing board-level approval. We developed a financial model to test risk allocations and cost scenarios, and to act as a shadow bid during the tender, worked with the RTA's technical and legal advisers to translate recommendations into contract and tender documentation, led market engagement and bidder days, and undertook financial evaluation of bids through to financial close.
The results
Our recommendations were approved at board level and reflected in a new Metro and Tram operations and maintenance contract, agreed following a competitive market process and awarded in 2021. The RTA recognised the advisory consortium's work with an award for one of its best consultancy engagements of the year, and Grant Thornton has continued to support the RTA with contract management since award, giving it an ongoing, trusted adviser on one of its most significant operating contracts.
About our team
Grant Thornton's rail and transit team has advised the Roads and Transport Authority on its Metro and Tram network, part of a wider portfolio of metro engagements including Doha Metro in Qatar and the Elizabeth Line in London. Led by Rupert Ingham, Director, Infrastructure Advisory, the team combines commercial, financial and procurement specialists experienced in structuring and re-procuring major operations and maintenance contracts, and in supporting clients through board approval, market engagement and financial close. This was complemented by the strength of Grant Thornton’s teams in the UAE.
