Infrastructure finance: Second Metro line for capital of Dominican Republic
Frankfurt am Main (ots)
- KfW IPEX-Bank structures and finances Metro line in Santo
Domingo, Dominican Republic
- Complete railway electrification and railway automation systems
to be supplied by a consortium led by Siemens
- Support for important export transaction
- Helps improve traffic situation in the metropolis and develop
environmentally sound and efficient urban transport systemsKfW IPEX-Bank has joined with other banks to finance the provision of the railway electrification and railway automation systems including rail construction for the first expansion stage of the second Metro line in Santo Domingo, the capital of the Dominican Republic. The Dominican Congress recently approved the concluded financing agreements.
The entire railway system will be realised by a manufacturing consortium led by Siemens AG. The order comprises rail construction and signalling equipment, electrification and communications systems, fare management, tunnel ventilation and fire prevention, installation and project management as well as maintenance services for the components during the first three years. The system matches the technology already supplied by Siemens for Line 1, which is characterised by high reliability.
Through its project and export finance unit, Siemens Financial Services structured the multisourcing financing concept together with KfW IPEX-Bank and the other financing banks modelled after Line 1. The total financing volume of around EUR 166 billion is divided among the syndicate banks in accordance with the German, French and Spanish supplier shares, with coverage by the respective export credit insurance agencies (EulerHermes for Germany). KfW IPEX-Bank is participating in the German and Spanish tranches.
"With this financing KfW IPEX-Bank supports Siemens AG in this important and prestigious export transaction", said Christian K. Murach, member of the Management Board of KfW IPEX-Bank. "In addition, the financing makes an important contribution to the development and implementation of efficient, power-saving and environmentally-friendly rapid transit systems and, thus, to promoting climate and environmental protection."
Line 2 is to run east-west, complementing the north-south Line 1, which is already operational. Construction work on the tunnel, the permanent way and the stations is already well advanced. The new Line (stage 1) will initially be 11.5 kilometres long and serve 14 metro stations; in a second expansion stage it will reach a total length of 28 km. It is part of the urban rail system of Santo Domingo, which is to be expanded to a total length of 60 km.
With now more than three million inhabitants, the metropolis still has an inadequate transport network. Apart from the first Metro line, which began operating in 2009, bus lines and share-taxis ("conchos") are the only other means of public transport. There is an unmet, urgent need for public transport, and the city is suffering from chronic road congestion.
The construction of Line 1 created a link between the very populous but poorer northern zone and the southern parts of the city. This has considerably improved access to the city centre and to the university. Line 1 has been received very positively by the population and is currently carrying some 100,000 passengers daily. With a fare of 20 pesos (approximately 35 euro-cents), which is fixed by the government, an affordable means of transport has been created which benefits particularly low and medium-income users. The Metro also makes it easier for commuters to reach their workplaces. The plan to connect long-distance bus lines to the terminal stations is intended to optimise commuter traffic in Santo Domingo in the medium and long term.
The supplies and services that originate in Germany alone are expected to create an employment effect of 2,000 expert-months in total. On the other hand, small and medium-sized suppliers will also be involved to a considerable extent. During the implementation of the electromechanical components, up to 4,500 local jobs are expected to be created additionally. The subsequent operating phase will create some 400 direct and more than 600 indirect jobs in the areas of train control, maintenance, software operation and security, and other areas.
A Press photograph is available in the press section on the homepage of KfW IPEX-Bank under "Material for the press/photographs".
About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium and long-term lending to boost the export economy, develop economic and social infrastructure and support environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has 526 employees (as of 31 December 2010) and is represented in the key economic and financial centres around the globe.
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