Dubai's finance department increased $ 675 million from the dual-currency loans for the completion of the first phase of the Al-Sufouh tram project in the emirate. The facilities include a 13-year $ 401 million loan to be amortized over 10 years beginning in 2015, the Dubai government's media office told in an emailed statement on Wednesday. These loans are guaranteed export credit agency of the Belgian government official (ONDD) and France (COFACE).

The second part of the loan consists of a six-year $ 274 million Islamic Ijara facility is amortized over three years starting 2015. The facility is created equally in dollar and dirham. Citigroup, Deutsche Bank, and HSBC who got the mandate as lead arrangers and providers of emission guarantees for the financing, the statement said. The first phase of Al-Soufouh Tram project will feature the construction of 10km-long track starting from Dubai Marina and walk up to the Knowledge Village.

Liquidity woes have been disrupting the progress of transportation projects and the Dubai Roads Authority (RTA) that seeks to meet the payments after the global slowdown. The tram was originally planned to be completed in 2011. Dubai also has agreed to provide $ 800 million financing by securitizing loans highway receipts in July last year. Currency, dual six-year financing is expected to support the RTA's infrastructure projects.

Comments are closed.