Dubai: The Government of Dubai’s Department of Finance (DOF) Wednesday announced the successful completion of the Dh9 billion, seventeen-year financing to complete the construction of Dubai Metro’s Route 2020 extension project.

The project will cost Dh10.6 billion and envisages the construction of about 15km extension of the Dubai Metro’s Red Line from Nakheel Harbour and Tower station up to the site of the Expo, with seven stations as well as an upgrade to the existing metro network.

Expected to have significant social and economic benefits, the project will facilitate passenger traffic, including the Expo visitors in the areas served.

The transaction consists of a 17-year Dh5.2 billion loan supported by comprehensive guarantees from the French export credit agency, Bpifrance Assurance Export S.A.S (BPIAE) and the Spanish export credit agency (CESCE), amortising over 14 years commencing in 2020 and a 10-year conventional facility of around Dh4 billion, amortising over six years commencing in 2022.

Commenting on the transaction, Abdul Rahman Saleh Al Saleh, DOF director-general said: “The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy and the vision of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai,”

“The Government of Dubai continues to examine ways to optimise it’s funding strategy; ECA financing has been a good example of this strategy and we have been able to achieve long-term financing at competitive rates, while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner,” he added.