Back in September, Dubai was searching for a $2.5bn in loans to finance a 15 km extension of its metro line from Nakhael Harbour to reach World Expo 2020.
Wednesday RTA secured that loan, and it was all because of Dubai’s outstanding financial records, as per Vice President, Prime Minister and ruler of Dubai, Mohammad bin Rashid Al Maktoum.
How did they do it?
Al Maktoum said: “The Government of Dubai continues to examine ways to optimize its funding strategies.”
“ECA (Export Credit Agency) 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 to manage our budget proactively and in a fiscally responsible manner.”
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What will all the money finance?
The expected completion of Expo 2020 in Dubai will allow people to share ideas, showcase innovation, and human ingenuity.
Lasting for six months, the event is organized every five years in different cities.
The Dubai Metro Red has been a highly successful project, and its extension will have many benefits for both visitors of the Expo and residents in the area.
The contract for the design and construction of the project was given to Acciona Infraestructuras and Gulermak.
It has been an enormous success so far with Dubai receiving financial support from 2 ECAs.
The first being BPIfrance loaning Dubai and agreeing to $1.42 billion over 17 years, and Compañía Española de Seguros de Crédito a la Exportación, lending $1.1 billion over a 10-year facility.