* HSBC appointed as ECA coordinator - sources
* Split between commercial loans and ECA funding to be
* Extra funding for Expo-linked projects possible
By Davide Barbuscia and Tom Arnold
DUBAI, Dec 13 Dubai is working with HSBC
on the financing of Expo 2020 Dubai, a $7 billion
exhibition centre project expected to attract 25 million
visitors, sources familiar with the matter said.
The site will host Expo Dubai which will run from October
2020 to April 2021 and will be the first World Expo hosted in
the Middle East, according to the Expo 2020 website.
The project provides more evidence that Dubai is back in
expansion mode after running into trouble during the 2009 global
financial crisis. The expo is a major part of Dubai's plans to
expand its infrastructure and boost its credentials as a tourist
The financing will come from bank loans and from various
export credit agencies, the sources said. HSBC has been
appointed to coordinate the export credit agencies and financing
supported by them, the sources said, adding that the split
between the commercial loans and the export credit financing was
yet to be defined.
Export credit-backed financing provides guarantees that
support the export and supply of domestic goods or contractors
or in some cases direct lending.
Expo 2020 Dubai was not immediately available to comment.
HSBC declined to comment.
The exhibition centre project, in the Dubai South district,
situated midway between Abu Dhabi and Dubai, will be 4
kilometres long and 1.8 kilometres wide, according to its
website. The development will include a number of infrastructure
projects, an exhibition centre, academic and research
institutions and a technology cluster, the website said.
It will possibly also need additional funding on top of the
$7 billion for projects linked to the event and led by
government entities such as Dubai Municipality, the Dubai
Electricity and Water Authority, and Dubai's Roads and Transport
Authority, two of the sources said.
The expo site is located near Dubai's new airport, Al Maktoum
International Airport. There are proposals for a $3 billion
expansion of the airport and HSBC is also advising the
government on the financing for this project.
(Editing by Jane Merriman)