Thursday, December 15, 2016

Dubai expects to spend 35700 mdd in the new world’s largest airport – The Financial

Dubai expected to spend 35 thousand 700 million dollars to develop its second airport and central logistics in the south of the city, which will be financed largely through debt, according to two sources knowledgeable of the plan.

The investment will take place at the Dubai World Central (DWC) and associated facilities, including the International Airport, Al Maktoum in the next 12 years, according to the sources, who asked not to be identified because the information is not public.

The spending plan is described in documents that invite the banks to bid for a loan of 3 billion dollars that the Government is seeking to attract for the expansion of initial, according to the sources.

HSBC Holdings is the financial advisor of the loan, they say.

In turn, this loan is being collected by a company for specific purposes, which will be paid by the Department of Finance of Dubai based on a formula related to the number of passengers of the two airports in the city, according to sources.

The company also will raise future funding for the project, which includes debt, they noted.

Dubai is expanding the International Airport of Al Maktoum in the heart of Dubai World Central, a development in different phases of six areas of 140 square kilometres (54 square miles), which include spaces for logistics, office, residential and golf, according to the website of Airports of Dubai.

the costs of all the development of the DWC was estimated at more than 32 billion dollars, according to the company.

once completed, will be the largest airport in the world with a capacity of over 220 million passengers and 16 million tons of cargo a year.

Al Maktoum is close to the location of the expo 2020 in the south of the city, and Dubai planning to move there to Emirates, its flagship airline, to 2025.

A spokesman for the Department of Finance of Dubai refused to make a statement about it.

The Dubai International Airport and Al Maktoum will grow to provide service to 146 million passengers by 2025, compared to the 78 million who attended in 2015, said the government last month.

The master plan for the second phase of Al Maktoum has been approved and the work on detailed design is in progress, while the Dubai International, which is now the airport with the most international traffic in the world, is reaching its maximum capacity and is facing limitations of space, said the Executive.

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