Law No. (6) of 2006

Concerning

Contribution of Beneficiaries to the Cost of

Roads and Public Transport Contracts[1]

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We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,

After perusal of:

Law No. (17) of 2005 Establishing the Roads and Transport Authority,

Do hereby issue this Law.

Article (1)

This Law will be cited as "Law No. (6) of 2006 Concerning Contribution of Beneficiaries to the Cost of Roads and Public Transport Contracts".

Article (2)

The following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:

 

Emirate:

The Emirate of Dubai.

RTA:

The Roads and Transport Authority.

Board of Directors:

The board of directors of the RTA.

Chairman of the Board of Directors:

The chairman of the Board of Directors of the RTA.

                          

Beneficiary:

A natural or legal person, or a Government or private entity, including free zones, which implements in the Emirate a project that generates a number of trips in excess of the maximum number prescribed by the regulations and technical standards and manuals adopted by the RTA.

Generated Trips:

The number of trips generated by a proposed project on roads and junctions in the vicinity of the project and on its access roads and exits, measured at Peak Hours and calculated in accordance with the technical manuals and Traffic Models adopted by the RTA.

Traffic Model:

Databases and specialised computer software provided by the RTA for the purposes of studying road networks and transport systems and determining projected traffic volume and distribution of traffic load on these networks and systems.

Traffic Solutions:

New alterations and improvements required to be made to road networks and transport systems in the vicinity of the concerned project to accommodate present and projected traffic volume and prevent degradation of the standards of the traffic services provided by these networks and systems to unacceptable levels due to the traffic volume generated by the project.

Traffic Impact Study:

A specialised study conducted by a specialised entity to determine the number and types of trips generated by the concerned project and the way to distribute traffic load on the areas, road networks, and current and planned transport systems in the Emirate in order to determine the Traffic Solutions and the number of parking spaces required to serve the project.

Peak Hours:

The hours at which the traffic volume on the roads affected by the concerned project and on the access roads and exits of the project reaches its maximum limit, and which are determined in accordance with the technical standards and manuals adopted by the RTA.

Article (3)

1.   The RTA will be exclusively responsible for prescribing the technical requirements, standards, and manuals relating to the study, design, implementation, operation, and integration of road networks and transport systems in the Emirate.

2.   The need for conducting Traffic Impact Studies and the level and contents of these studies will be determined in accordance with the "Traffic Impact Studies Manual of 1999" attached to this Law as Annex (1).

Article (4)

Before commencing works on a project site, a Beneficiary must obtain the RTA approval of the rights of way of road networks and transport systems within the boundaries, and on the access roads and exits, of the project.

Article (5)

Notwithstanding any provision in any other legislation, concerned entities in the Emirate and free zone authorities must not issue construction permits to any project that requires a Traffic Impact Study without the approval of such Traffic Impact Study by the RTA. For the purposes of this Article, concerned entities will include real property developers authorised to issue construction permits.

Article (6)

A Beneficiary must provide the RTA with the following:

1.     all information and data relating to his project as required for updating the Traffic Model of the project site. The Beneficiary must bear the cost of use and update of the Traffic Model; and

2.     a Traffic Impact Study of the projected traffic flow of the project. This study must: 

a.     be conducted in accordance with the Traffic Impact Studies Manual of 1999 attached to this Law as Annex (1);

b.    be based on the Trip Generation and Parking Rates Manual of 1999 attached to this Law as Annex (2);

c.     be based on the Traffic Model provided by the RTA; and

d.    be prepared by a consultant accredited by the RTA and submitted during the project planning phase. The Beneficiary must bear the Traffic Impact Study revision fees.

Article (7)

The RTA may, based on the outcome of the studies it conducts or the Traffic Impact Study submitted by a project owner, determine the maximum traffic impact the project is permitted to create. The project owner must make the necessary modifications to his project in compliance with the relevant requirements of the RTA.

Article (8)

1.   A Beneficiary will, either solely or jointly with the RTA, bear the cost of design, construction, and maintenance of the components of Traffic Solutions required for the concerned project, in accordance with the requirements prescribed by the RTA based on the outcome of the Traffic Impact Studies it approves.

2.   The Chairman of the Board of Directors will determine the contribution of a Beneficiary to the cost referred to in the preceding paragraph.

Article (9)

Subject to Article (8) of this Law, the RTA may implement the Traffic Solutions required for a project after a Beneficiary provides a bank guarantee equal to the value of required works, or may, based on the volume of required Traffic Solutions and the time required for their implementation, authorise the Beneficiary to implement these solutions, under supervision of the RTA, through a contractor accredited by the RTA. The Beneficiary must pay all costs of the required Traffic Solutions as prescribed by the RTA. 

Article (10)

Upon the RTA approval of an official request submitted to it by a Beneficiary for supervising the consultants conducting the studies, making the designs, or supervising the implementation of a project for that Beneficiary, the Beneficiary will be liable to pay all costs owed either directly to the RTA or to any other parties appointed by the RTA to perform the required works, including the fees payable to the RTA for the supervision of such works.

Article (11)

1.   The following technical manuals and standards attached to this Law are hereby adopted:

a.     the Traffic Impact Studies Manual of 1999 attached to this Law as Annex (1); and

b.    the Trip Generation and Parking Rates Manual of 1999 attached to this Law as Annex (2).

 2. The Chairman of the Board of Directors may make any necessary amendments to the technical manuals and standards mentioned in paragraphs (1)(a) and (1)(b) of this Article.

Article (12)

The RTA will introduce the following fees:

a.   a "Traffic Model Fee" in the amounts specified in Schedule (1) attached to this Law;

b.   a "Traffic Impact Study Revision Fee” as approved by the Chairman of the Board of Directors; and

c.    a "Study, Design, and Implementation Supervision Fee" as approved by the Chairman of the Board of Directors.

Article (13)

In the event of any violation of the provisions of this Law, the measures and penalties prescribed in Schedule (2) of this Law will be imposed pursuant to a resolution of the Executive Director of the RTA. The resolution will also determine the rules and procedures for imposing such penalties.

Article (14)

Fees and fines collected pursuant to this Law will be paid to the RTA. 

Article (15)

The Chairman will issue the bylaws required for the implementation of the provisions of this Law.

Article (16)

Any provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Law.

Article (17)

This Law will be published in the Official Gazette and will come into force on the day on which it is published.

Mohammed bin Rashid Al Maktoum

Ruler of Dubai

Issued in Dubai on 8 March 2006

Corresponding to 8 Safar 1427 A.H.


Schedule (1)

Traffic Model Fee

SN

Number of Trips Generated by the Project during Peak Hours

Fees for Obtaining and Using the Traffic Model (in Dirhams)

1

Less than 500 trips

10,000.00

2

From 501 to 3,000 trips

20,000.00

3

From 3,001 to 5,000 trips

30,000.00

4

From 5,001 to 10,000 trips

50,000.00

5

From 10,001 to 20,000 trips

100,000.00

6

More than 20,000 trips

150,000.00

 


 

Schedule (2)

Measures and Penalties for Violation of the Provisions of Law No. (6) of 2006 Concerning Contribution of Beneficiaries to the Cost of Roads and Public Transport Contracts

SN

Violation

Measures/ Fines

1

Failure to use the approved Traffic Model when preparing the study

Order the Beneficiary to re-conduct the study using the approved Traffic Model

2

Non-compliance with the relevant technical manuals and standards, or preparation of the study by a consultant not accredited by the RTA

Order the Beneficiary to re-conduct and re-submit the study as prescribed by the RTA

 

3

Failure to pay the fees prescribed under Article (12) of this Law

Order the Beneficiary to pay due fees plus a delay fine of ten percent (10%) per month

4

Provision of inaccurate information in a manner that leads to underestimation of the total number of Generated Trips

Order the Beneficiary to pay the prescribed fees based on the actual number of Generated Trips, to amend the study and the proposed solutions, and to pay five thousand Dirhams (AED 5,000.00) for every one hundred (100) undeclared trips. The fine must not be less than five thousand Dirhams (AED 5,000.00) or more than one hundred fifty thousand Dirhams (AED 150,000.00)

5

Obtaining a construction permit for the whole or part of the concerned project before obtaining the RTA approval of the Traffic Impact Study. Both the Beneficiary and the consultant who has designed the project will be held responsible for this violation

(1)   Suspend the construction permit and order the Beneficiary to conduct the study and implement its outcomes as approved by the RTA; and

(2)   Suspend or revoke the consultant's professional licence.

6

Failure to pay to the RTA the costs payable in respect of the project

Confiscate the bank guarantee, order the Beneficiary to pay a delay fine of five percent (5%) of the due amount per month, and suspend the issuance of any other licences for the projects and works belonging to the Beneficiary until the violation is remedied

 

7

Failure to implement the Traffic Solutions as per the plans and designs approved by the RTA within the time frame specified for its implementation

Order the Beneficiary to pay a delay fine of five percent (5%) of the cost of Traffic Solutions per month, implement the Traffic Solutions, and hold the Beneficiary liable for all relevant costs

8

Failure to comply with approved plans and designs when implementing Traffic Solutions

Order the Beneficiary to modify the Traffic Solutions to comply with the approved plans and designs, and to pay a fine of ten percent (10%) of the cost of implementation of the modifications

 

 

 



©2017 The Supreme Legislation Committee in the Emirate of Dubai

[1]Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.