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FINANCIAL NEWS
Dubai secures USD675m loan for Al Sufouh tram
23 Feb 2012
(MENAFN) Dubai government secured USD675 million facility to finance the first phase of the Al Sufouh Tram project, Arabian Business reported.
The transaction comprises a 13-year USD401 million loan which will amortize over 10 years starting 2015, and is guaranteed by the official government export credit agencies of Belgium (ONDD) and France (COFACE).
The second part of the transaction is a 6-year USD274 million Islamic Ijara facility, split equally in US dollars and Dirhams, and will amortize over three years starting 2015, Dubai government said.
Phase 1 includes the construction of a 10km long track starting from Dubai Marina to the Knowledge Village with a cost of USD1.1 billion, and will see 13 of the network’s 19 stations open to the public, Dubai’s Roads and Transport Authority (RTA) said in April.
The tram will connect with the Dubai Metro at three stations along Sheikh Zayed Road and will also tie-up with the monorail on the Palm Jumeirah.
Authorities say the line will include 25 vehicles each capable of carrying 400 passengers.
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