The Government of Dubai has sent out a request for proposals to banks for the financing of the expansion of Al Maktoum International Airport, it has been reported.
It is expected that the government will hear back from the banks over the coming weeks. The size, tenor and expected timeline of the financing package has not yet been established, the Dubai Department of Finance said in an emailed statement to Reuters.
According to a previous official statement, the financing is expected to be in the region of $3 billion.
Earlier this week, the government said that HSBC had be chosen to arrange the funding. A consortium consisting of the Department of Finance, Investment Corporation of Dubai and Dubai Aviation City Corporation, will be the borrowing entity for the project.
While the financing will include an Islamic component, it is also expected to attract both commercial banks and the backing of export credit agencies, banking sources said.
While Dubai International Airport currently serves as the main airport for the city, Al Maktoum International is expected to take over that role once expansion work is complete.
It emerged in March that ALEC had signed a deal with Dubai Aviation Engineering Projects to expand the current facility to more than double its existing size.
The built-up area of the passenger terminal will go from 66,107sqm to 145,926sqm. Work is set to be completed by June 2017.
It is the first phase of an expansion project that will see the airport handle up to 26.5 million passengers per year by 2025.
The proposed work includes a new immigration hall with 55 counters. The departure building will see the expansion of the public hall, commercial areas and offices as well as the check-in hall which will house 64 check-in counters. An additional 10 counters will be specifically dedicated to business-class travellers.