Jun 12 | 2020
(MENA) Package D of Stage Two
Banking group HSBC is to provide US$558 million in working capital finance for the construction of rail project for the UAE’s national rail provider Eithad Rail.
The giant construction project will involve significant breakbulk activity, including the construction of 35 bridges, 32 underpasses and 15 tunnels through the Hajar Mountains.
“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,” said Abdulfattah Sharaf, CEO UAE HSBC Bank Middle East.
The work will cover Package D of Stage Two of the project and will be carried out by a joint venture consisting of China Railway Construction Corp. and the UAE’s National Projects and Construction. The JV partners "are excited to be working together on Etihad Rail’s Package D. This is an iconic project that will connect key centers of trade and commerce across the UAE, catalyzing the growth of the nation’s economy,” said Hamad Al Ameri, managing director of NPC.
More than 145 kilometers of rail will be built connecting Fujairah and Khorfakkan ports to the rail network at Dubai-Sharjah border and increasing capacity to core markets in Dubai and Abu Dhabi.
“We are honored 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,” said Wang Lei, general manager of CRCC UAE.
The contract follows a recent uptick in Chinese investment in the UAE as part of China’s Belt and Road Initiative. In 2019, UAE and China signed an estimated US$70 billion of bilateral trade making the Emirates a major gateway for Chinese exports to the Middle East.
HSBC has recently come under fire for its support of the Chinese government in its crackdown on protestors in Hong Kong, receiving criticism form the U.S. Secretary of State over its allegiance with China.
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