HSBC has structured and financed a $558 million (AED2.049Bn) 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 United Arab Emirates’ national railway.
An unincorporated 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 2019. 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-kilometre 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.
His Excellency Dr. Ali Obaid Al Dhaheri, Ambassador of the United Arab Emirates to the People’s Republic of China, commented: “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.”
Abdulfattah Sharaf, Chief Executive Officer UAE and Head of International, HSBC Bank Middle East Limited, said: “HSBC is incredibly proud to once again be involved in one of the UAE’s transformative infrastructure projects. HSBC’s heritage as a bank founded in Asia 155 years ago, combined with its origins in the Middle East dating back to 1889, make it a powerful partner to connect two of the world’s most exciting economies.”
Wang Lei, General Manager of CRCC UAE, added: “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.”
Eng. Hamad Al Ameri, Managing Director of NPC, said: “China Railway Construction Corporation and National Projects and Construction are excited to be working together on Etihad Rail’s Package D. This is an iconic project that will connect key centres of trade and commerce across the UAE, catalysing the growth of the nation’s economy.”
HSBC 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.
