Dubai has raised $675 million in funds to restart the Al Sufouh Tram project that has been stalled for the last three years.
Dubai's Al Sufouh Tram project back on track
Dubai has raised US$675 million (Dh2.47 billion) to restart a tram project that has been stalled for the past three years.
Work on the construction of Al Sufouh Tram in Dubai is resuming after the Department of Finance yesterday announced it had secured the bank funding.
Arranged through Citibank, Deutsche Bank and HSBC, the money will allow the completion of the first phase of the project, the construction of a 10-kilometre-long track from Dubai Marina to the Knowledge Village.
The deal comprises a 13-year, $401m loan guaranteed by the official government export credit agencies of Belgium and France -the amount will amortise over 10 years starting in 2015 - and a six-year $274m Islamic Ijara facility, split between US dollars and UAE dirhams and amortising over three years, also starting in 2015.
This month, Dubai's Roads and Transport Authority awarded a 13-year maintenance contract to a consortium comprising Alstom and Cofely Besix Facility Management.
That contract is worth €120m (Dh583.2m), including €68m for Alstom, the consortium's leader, and €52m for Cofely. It includes an option for a €50m, five-year extension.