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Dubai eyes $2bn funding for metro expansion

DUBAI, January 14, 2016

Dubai’s Road and Transport Authority (RTA) is seeking more than $2 billion to finance a 15-km extension of its above-ground metro train line to the World Expo 2020 site, said a report.

The company is in talks with banks and contractors to extend the line from the Nakheel Harbour and Tower Metro station to the site of the mega international trade and tourism event located in the south of Dubai, reported Bloomberg, citing sources.

The funding will probably include bank loans and export credit, they stated.

The RTA has invited contractors bidding for the project to submit a financing proposal for up to 80 per cent of the project cost and may award the contract this month, said the report.

Dubai government is shifting away from funding infrastructure projects entirely from direct government budgets and looking into tapping more private financing, stated the report.

In November last year, the emirate had put into effect a new public-private partnership law, signalling more interest in attracting private investment to develop projects and ease the burden on government budgets.

The government aims to increase the number of visitors coming into Dubai to 20 million by the time of the World Expo 2020 in four years.

The city is likely to spend about $8 billion on infrastructure mega-projects including hotels, new metro rail links and more shopping malls, said the report.

Dubai is also expanding its second hub at Al Maktoum International Airport to deal with the forecasted growth in visitor numbers, it added.




Tags: Dubai | Expansion | metro | Funding | expo 2020 |

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