Minister of International Cooperation Rania El Mashat said the European Bank for Reconstruction and Development (EBRD) has approved a formal loan request from the government for euros 250 million to partially fund a project to convert Alexandria’s Abu Qir railway into an underground metro.

The existing railway connects downtown Alexandria with Abu Qir, north-east of the city.

The EBRD loan will finance infrastructure works and relevant rail system upgrades, including signalling, telecommunications, and centralized control systems, the minister said.

The new fund backs the state’s policy to upgrade the infrastructure of the transport sector, enhance sustainability and transformation to green economy, she said, noting that Cairo has a leadership and clear plans in the various development projects such as transport, renewable energy and water along with declaring a national strategy for climate change by 2050 which was launched during Glasgow summit held earlier in the month.

The loan is part of an investment package estimated at europs 1.6bn, which is expected to be co-financed by the European Investment Bank, the French Development Agency, and the Asian Infrastructure Investment Bank, she added.

The project will be implemented by the National Authority for Tunnels (NAT), a state-owned executive agency affiliated to the Ministry of Transportation.

The Abu Qir metro will help Egypt promote its green transition in transport through shifting an individually operated railway into a sustainable, accessible, and inclusive public transport means.

The operation of the new metro will be assigned through a long-term contract to an experienced metro operator following its completion, which will support the private sector involvement in urban transport service provision.

Source: State Information Service Egypt