Qatar's Red Line is a step closer to being crossed
At a ceremony held at Oryx Rotana Hotel, a consortium of lenders including Barwa Bank, Mashreq, Qatar Islamic Bank (QIB) and Union National Bank signed a deal to provide club financing of QAR 2.11 billion ($580 million) to the joint venture between Impregilo, SK Engineering & Construction Co and Galfar Al Misnad Engineering and Contracting.
The JV partners are to build the QAR 8.46 billion ($2.32 billion) Red Line North Underground line for Doha Metroon behalf of Qatar Railways Company. The Red Line North Underground project includes two parallel 13km underground tunnels and seven underground stations between Msheireb and Lusail Marina.
Ross Officer, Country Head of Mashreq in Qatar, said, "We are confident that this strong joint venture partnership will ensure the success of the Red Line North Underground project and is another step towards implementing Qatar's future plans."
Flavio DiPietro, Area Financial Controller of Impregilo, said, "The details of the financial transaction have been carried out with the maximum professionalism thanks to a tailored and dutifulness work that has rendered a financial instrument that today we are here to represent as a benchmark for the international market and primarily for the State of Qatar."
In a statement released to Qatar Exchange, Bassel Gamal, QIB’s Group CEO, said, "QIB grants special attention to strategic projects in the State of Qatar, and accordingly directs large share of its financing operations to cater the increasing demand of Islamic finance to infrastructure projects. We take pride in co-financing these enormous transportation projects in Qatar.
“We recently managed to co-finance a number of ventures along with other Qatari, regional and global banks. This anchors the cooperation efforts between various banking institutions to provide proper financing towards pioneering projects; heralding a new phase of Qatar’s journey towards economic growth.”
The Doha Metro is a key component of the country’s envisaged integrated rail system, which upon completion would also include high-speed long distance rail links, freight lines, Lusail light rail transit system and people mover systems in West Bay and Education City.
By: Robin Amlôt