The Transport Ministry is hoping to complete four railway development projects worth USD 1 bn by 2022, Minister Hisham Arafat tells Al Mal in an interview. The projects include infrastructure and signaling system maintenance and upgrades.

Gov’t is still looking to the private sector to play a role in the overhaul of the nation’s rail system: On private sector partnerships, Arafat said the ministry is actively studying offers from foreign companies to build new rail lines and provide maintenance services. This comes as legislative amendments are being drafted to give the private sector full freedom to build, manage, and maintain rail infrastructure. As for the electric rail linking Salam City to the new capital, Arafat said the interest rate on the first tranche of the USD 739 mn loan from China was dropped to 1.8% from an initial 2%. The tranche will have a 15-year maturity and a five-year grace period. Negotiations are still ongoing for the second USD 460 mn tranche. The state will spend EGP 12.3 bn will be spent on purchasing 32 new locomotives and renovating 23 others, in addition to EGP 1.9 bn for signaling systems, Arafat said.

Investing in the Metro: Separately, the ministry is also still in negotiations with the European Bank for Reconstruction and Development for USD 350 mn in funding to develop Metro Line 1, Arafat added. The government is spending EGP 998 mn on the supply and manufacturing of four trains for Metro Line 2. As for Metro Line 3, which the government wants to manage through a private sector company, negotiations are ongoing with a number of international finance institutions to obtain USD 500 mn in funding for the section linking Heliopolis to Cairo Airport.