How is Al Maktoum International Airport financed?
CWO rounds up the funding models being used or considered for the aviation hub, as outlined by HE Khalifa Al Zaffin, executive chairman of DACC
HE Khalifa Al Zaffin, executive chairman at Dubai Aviation City Corporation (DACC), has in a recent Deloitte report, revealed the funding programmes being deployed for Al Maktoum International Airport (AMIA).
Zaffin's remarks were released in a report titled GCC Powers of Construction 2016 – The funding equation, published by financial advisory Deloitte.
As part of an interview carried in the report, Zaffin outlined the variety of funding models that are being used or considered for deployment to finance AMIA's development.
"In terms of raising the required financing, there are a number of ways in which we are managing to do this," he said.
"In the case of AMIA, we have tapped into export credit funding from the countries [that] are major exporters of equipment and technology for construction of airports through respective export credit agencies, which lend under significant long-term payment plans."
The build-operate-transfer (BOT) model is being "explored" with international outfits for major components and systems to be built for AMIA, Zaffin added.
He continued: "We are also using the project finance model, where contractors are funded through banks during construction.
"Other funding models under consideration include using the securitisation of airport assets which directly generate revenue, and the issuance of long-term bonds and sukuks."
This March, UAE contractor ALEC inked an agreement for expansion works related to the passenger terminal building at AMIA.
Under the agreement, the first phase of the project, which increases the built up area of the passenger terminal building from the existing 66,107 sqm to 145,926 sqm, will be completed by June 2017.