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Wed 21 Sep 2016 06:56 PM

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Dubai said to seek $2.5bn loans to finance metro extension

Banks reportedly submit proposals to the emirate’s Department of Finance for the Route 2020 project

Dubai said to seek $2.5bn loans to finance metro extension
(Photo: courtesy of RTA Twitter feed)

Dubai is reportedly seeking $2.5 billion in loans to finance a planned 15km extension of its metro line to the World Expo 2020 site.

Bloomberg reported that banks submitted proposals this week to the emirate’s Department of Finance, including a $1.34 billion facility backed by European Export Credit (ECA) agencies, citing two people with knowledge of the plan.

They claimed lenders also bid for a $1.12 billion unsecured, commercial facility that is guaranteed by the Dubai government.

Dubai’s department of finance declined to comment, Bloomberg said.

Earlier this month, it was announced that Dubai's Route 2020 expansion of the city's Metro system is set to start operating on May 20, 2020, five months prior to the Dubai Expo mega event.

Dubai Media Office said the Route 2020 project covers the extension of the Dubai Metro Red Line by 15km from Nakheel Harbour & Tower Station to the site of Expo 2020 in Jebel Ali.

In June, Dubai's Roads and Transport Authority (RTA) announced the award of a AED10.6 billion ($2.89 billion) contract to Expolink Consortium, led by French firm Alstom, Acciona from Spain and Turkish firm Gulermak to build the extension.

The transport authority said the project includes the procurement of 50 trains - 35 to upgrade the metro service and 15 for the Expo service.

Route 2020 is expected to serve about 125,000 riders per day and the number is set grow to as many as 275,000 riders by 2030, it added.

The trial run on the 15km route is expected to begin by the end of 2019.

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