Qatar Islamic Bank (QIB) has signed an agreement with the Middle East Dredging Company (Medco ) to finance a dredging project on the access channel at the New Port Project in Qatar.

Medco will use the fund to buy the machinery, equipment, labour and other necessary works needed to execute the $1.23bn contract received from the New Port Project Steering Committee.

Located between Al Wakrah and Mesaeed, south of Doha, the New Port will be developed in several phases, including container terminals with a combined annual capacity of more than six million teu per year.

QIB’s acting CEO Ahmad Meshari said: "When complete, New Port Project will revolutionise the way this country handles imports and exports by sea, contributing to increased maritime trade between Qatar and the rest of the world."

The contract also includes the dredging of the basin and the construction of the two rubble mound outer breakwaters on each side of the channel.

Medco will also be responsible for dredging a 20km access channel and a naval base basin, building a rock revetment at the perimeter of the naval base, the supply and installation of navigation aids and environmental mitigation.

About 45 million m³ of hard rock materials will be dredged under the project, which started last month and is expected to be completed by early 2016.

Medco will deploy its self-propelled Al Jarraf dredging vessel to work on the contract, including two self-propelled seagoing rock cutter suction dredgers.

The entire project is valued at $7.42bn, including the construction of the new port to serve the expanding trade needs of Qatar for 2030 and beyond.