Gulf Construction Online - HSBC funding for Etihad Rail contractors

Contractors

HSBC funding for Etihad Rail contractors

01 July 2020

HSBC has structured and financed a $558-million working capital package for the contractors who successfully tendered for the civil works and construction contract for Package D of Stage Two of Etihad Rail’s national railway network.

A joint venture between China Railway Construction Corporation (CRCC) and the UAE’s National Projects and Construction (NPC) company was awarded the contract by Etihad Rail in December last year. With the working capital facilities now in place, construction on the railway line has begun.

Etihad Rail Package D involves the construction of a 145-km railway line connecting the ports of Fujairah and Khorfakkan to the pan-Emirates network at the Dubai border with Sharjah, opening up connections to Dubai, Abu Dhabi, and the UAE border with Saudi Arabia.

Dr Ali Obaid Al Dhaheri, the UAE Ambassador to China, says: “With the UAE and China both devoted to infrastructural development as a central pillar of our bilateral cooperation, it is positive to see China Railway Construction Corporation’s engagement with Etihad Rail.”

“The strong bilateral relationship between the UAE and China has led to the activation of a number of joint agreements across infrastructure, railways, energy, and sustainability sectors; part of the comprehensive strategic partnership between our nations.”

HSBC had won a competitive pitch to provide the CRCC-NPC joint venture with a comprehensive $558-million package of guarantees, trade, supply chain and receivables, finance cash management, and foreign exchange solutions to enable them to successfully complete the railway.

Wang Lei, General Manager of CRCC (UAE), says: “We are honoured to take part in another project of national strategic importance for the Etihad Rail network and we are grateful to Etihad Rail and the UAE government for their trust and confidence.”

“As the leading company for infrastructure development in the world, CRCC will deliver this project successfully in association with our JV partner, NPC,” he stated.

NPC Managing Director Engineer Hamad Al Ameri says its joint venture was excited to be working on Etihad Rail’s Package D, which will connect key centres of trade and commerce across the UAE.