Abu Dhabi Ports Company to spend up to $10 billion on its Khalifa Port project
The Khalifa Port and Industrial Zone project is in the UAE is halfway betweeen Abu Dhabi and Dubai. Construction is due to be finished in 2010.
According to chief executive officer Ahmed al-Calily, the ADPC may sell bonds, including sharia-compliant sukuk, to help finance the project's construction.
“We are looking at short-term and long-term financing,” said Calily. “The long-term debt could include conventional bonds or Islamic bonds.”
“ADPC plans to arrange a short-term loan before the end of the year and then decide on long-term financing,” he added.
Reports say that the Khalifa project is part of the government's plan to promote industrial expansion in Abu Dhabi to reduce its reliance on oil production.
New regulations for the Khalifa Industrial Zone will permit majority ownership from foreign companies.
DP World is to manage and operate Khalifa Port, which is scheduled to have a first-phase container handling capacity of 2 million twenty-foot equivalent units (TEUs). Final-phase completion may push that figure up to 8 million TEUs.
ADPC has also contracted DP World's sister company Economic Zones World (EZW) to operate the 25 km² Free Trade and Logistics Zone (Khalifa Industrial Zone).
Four consortia have been shortlisted for the first phase construction package covering the dredging of 40 million cubic metres of material, Calily said, declining to name the groups.
"The contract is in the order of $1 billion and will be awarded by the fourth quarter of this year,” he added.
According to chief executive officer Ahmed al-Calily, the ADPC may sell bonds, including sharia-compliant sukuk, to help finance the project's construction.
“We are looking at short-term and long-term financing,” said Calily. “The long-term debt could include conventional bonds or Islamic bonds.”
“ADPC plans to arrange a short-term loan before the end of the year and then decide on long-term financing,” he added.
Reports say that the Khalifa project is part of the government's plan to promote industrial expansion in Abu Dhabi to reduce its reliance on oil production.
New regulations for the Khalifa Industrial Zone will permit majority ownership from foreign companies.
DP World is to manage and operate Khalifa Port, which is scheduled to have a first-phase container handling capacity of 2 million twenty-foot equivalent units (TEUs). Final-phase completion may push that figure up to 8 million TEUs.
ADPC has also contracted DP World's sister company Economic Zones World (EZW) to operate the 25 km² Free Trade and Logistics Zone (Khalifa Industrial Zone).
Four consortia have been shortlisted for the first phase construction package covering the dredging of 40 million cubic metres of material, Calily said, declining to name the groups.
"The contract is in the order of $1 billion and will be awarded by the fourth quarter of this year,” he added.