Dubai has successfully finalised the $2.45bn, 17-year financing to complete the construction of Dubai Metro's Route 2020 extension project.

The $2.9bn (AED10.6bn) project will see the construction of a 15km extension of the Dubai Metro's Red Line from Nakheel Harbour and Tower station up to the Expo 2020 site, and will include seven stations and an upgrade to the existing metro network.

The $1.42bn loan was supported by comprehensive guarantees from the French export credit agency, Bpifrance Assurance Export and the Spanish export credit agency CESCE.

READ: Construction of Dubai's Route 2020 rail stations up to 42% complete

The 17-year loan will be amortised over 14 years commencing in 2020 and a 10-year conventional facility of $1.1bn is to be remunerated over six years commencing in 2022.

Abdulrahman Saleh Al Saleh, The Government of Dubai's Department of Finance director general said: "The encouraging response received for this financing, illustrates the strong confidence of international banks in Dubai’s economy and the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

"The Government of Dubai continues to examine ways to optimise it's funding strategy; ECA financing has been a good example of this strategy and we have been able to achieve long term financing at competitive rates while at the same time allowing us to manage our budget proactively and in a fiscally responsible manner."

Banco Santander, First Abu Dhabi Bank, HSBC Middle East, Intesa Sanpaolo and Standard Chartered Bank acted as mandated lead arrangers and the facility providers for the financing.

Tunnelling works for the extension has reached 50% completion, the head of the emirate's Roads and Transport Authority (RTA) confirmed earlier this month.

Construction completion rates for the network's stations range from 4% to 42%.

The contract for the design and build for the project was awarded by the Roads and Transport Authority (RTA) to a consortium of Alstom Transport, Acciona Infraestructuras and Gulermak.