Egypt and the European Investment Bank (EIB) have signed a \u20ac1.128 billion ($1.4 billion) agreement to support investments in the rehabilitation and expansion of metro and tram systems in Alexandria and Cairo.<\/p>\n
The EIB financing will contribute to increasing the availability and improving the quality of public transport systems in the two cities, where 30-35 percent of the country’s population live and work.<\/p>\n
This new operation is in line with the EU bank\u2019s climate action objectives and comes in support of the government\u2019s national priorities, the bank said in a statement.<\/p>\n
EIB financing will support three large-scale projects in the sector. The first investment is set to support the rehabilitation and extension of the existing 13.8 km-long El-Raml tram in Alexandria. The second is to support the rehabilitation and upgrade of an underused 22 km-long urban railway in Alexandria into a high frequency metro (the Abu Qir Metro), adding metro stops and improving road safety by removing at-grade crossings.<\/p>\n
The third project will be for the rehabilitation of the 23 km-long metro line 2 in Cairo that has been in operation for 23 years and requires urgent upgrades of its electrical and mechanical systems.<\/p>\n
The EIB financing contract will be signed in two tranches. The first tranche of \u20ac600 million has been signed today, while the second tranche of \u20ac528 million will be signed early next year.<\/p>\n
The structure of the EIB facility allows the Egyptian government to secure the funding necessary for large-scale urban transport projects on competitive financial conditions provided under the European Union External Lending Mandate (2014-2020).<\/p>\n
In addition to the EIB\u2019s financing, the EIB Economic Resilience Initiative and the EU Neighbourhood Investment Programme (EU NIP) provided grants for technical assistance and advisory supporting the preparation of the three projects.<\/p>\n
These investments will lead to a greenhouse gas emissions reduction due to the expected modal shift, and will therefore contribute to the bank\u2019s climate action objective, as well as to the implementation of Egypt\u2019s Intended Nationally Determined Contributions (INDCs), as defined in the Paris Agreement on Climate Change of December 2015.<\/p>\n
\u201cUnderstanding the value of transport infrastructure is at the heart of informed policy-making. Benefiting more than half a million passengers a day, we are not only reshaping Egypt\u2019s economic geography but also meeting social and environmental targets to drive sustainable growth.\u201d Egyptian Minister of International Cooperation Rania al-Mashat said.<\/p>\n
\u201cWe value our partnership with the EIB, which has been instrumental in pushing the frontiers of ESG standards that push international cooperation across various sectors to varying projects, including the private sector,\u201d<\/p>\n
For his part, Egyptian Minister of Transport Kamel al-Wazir confirmed that the projects that will be financed by the EIB are: the project of rehabilitation of El-Raml tram in Alexandria with a value of \u20ac138 million, the project of converting the Abu Qir\/Alexandria railway line to a metro line with a value of \u20ac750 million, and the project of rehabilitating the second line with a value of \u20ac240 million.<\/p>\n
These projects have great importance in strengthening the mass transit system, which the political leadership has directed to be comprehensively developed in order to provide distinctive services to citizens.<\/p>\n
Al-Wazir also added that the two projects of developing the Abu Qir line, converting it into a metro line and the rehabilitation of the El-Raml tram will represent a paradigm shift in the means of transportation within the Alexandria governorate. He pointed to the fact that the pre-qualification works for the Abu Qir line and its conversion to a metro line have been tendered, and the tender documents for the El-Raml tram project are being finalised.<\/p>\n
He explained that the plan to rehabilitate the second line of the metro comes within the framework of the comprehensive plan implemented by the Ministry of Transport to modernise the infrastructure of the first and second lines of the metro. This will be by modernising signal electrification systems, communication systems and central control systems, renewing rails and electromechanical works, and purchasing new air-conditioned trains to make all the trains of the current fleet air-conditioned.<\/p>\n
\u201cAs the EU climate bank, we give high priority to clean urban transport projects such as trams and metros. Today, we signed the \u20ac1.128\u00a0billion government agreement supporting this important goal for our joint cooperation.\u201d Flavia Palanza, Director EU Neighborhood Countries at the EIB said.<\/p>\n
\u201cThis large-scale financing responds to the ambitious objectives of the Egyptian government to improve people\u2019s lives by building sustainable transport infrastructure and reducing CO2 emissions The \u20ac600 million first tranche of the EIB support is being signed today and we expect to sign the second tranche early next year.<\/p>\n
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\u201cWe are looking forward implementing these key investment projects with our Egyptian partners and the other IFIs.\u201d she added.<\/p>\n
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For his part, European Union Ambassador to Egypt Christian Berger said: \u201cSustainable urban mobility will contribute to our well-being and quality of life. The Egyptian Government and our EIB partners have put great efforts into bringing green, affordable and safe transport to Egyptian citizens, to facilitate commuting in dynamically developing urban areas.\u201d<\/p>\n
\u201cThe EU is committed to supporting green growth in Egypt in line with the spirit of the European Green Deal. Green, clean and sustainable transportation will reduce environmental impact and socioeconomic costs and has strong job-creation potential.\u201d<\/p>\n
This EIB facility is part of the bank\u2019s wider engagement in the urban transport sector in Egypt, which has been gradually increasing over recent years.<\/p>\n
In 2012, the EIB approved a loan of \u20ac600\u00a0million for Cairo Metro Line 3, which was signed in three tranches of \u20ac200 million each respectively in 2012, 2015 and 2016. In 2019, further financing of \u20ac350\u00a0million was signed for the Cairo Metro Line 1 Rehabilitation.<\/p>\n","protected":false},"excerpt":{"rendered":"
Egypt and the European Investment Bank (EIB) have signed a \u20ac1.128 billion ($1.4 billion) agreement to support investments in the rehabilitation and expansion of metro and tram systems in Alexandria and Cairo.<\/p>\n","protected":false},"author":4,"featured_media":320311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24,33],"tags":[148],"class_list":["post-320310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development-partners","category-main","tag-european-investment-bank"],"yoast_head":"\n