Back to the complete issue
Monday, 27 August 2018

Egypt, South Korea sign EUR 243 mn contract to manufacture, supply metro cars

Egypt, South Korea sign EUR 243 mn contract to manufacture and supply metro cars: Investment and International Cooperation Minister Sahar Nasr signed yesterday a EUR 243 mn with South Korea’s Ambassador to Egypt Yoon Yeocheol to manufacture and supply 32 metro cars, according to an Investment Ministry statement (pdf). The release doesn’t name the winning party, but our read is that this is a local assembly project in which the winning South Korean bidder will be sourcing 30% of the cars’ components in Egypt. Funding for the contract will come from the Korea Economic Development Cooperation Fund. The cars will be used for the third and fourth phases of Cairo Metro Line 3, with the first four scheduled for delivery in time for the inauguration of Phase 4B of the line at the end of 2019, according to Transport Minister Hisham Arafat. The remaining cars will be delivered at a rate of one per month. The order makes up the second half of the 64 cars the government had planned to lock down for the new line. Egypt had signed a EUR 350 mn contract with Korea’s Hyundai Rotem for the other 32 cars last year.

Financing for locomotives, too: The news came as President Abdel Fattah El Sisi signed off yesterday on a EUR 100 mn loan from the European Bank for Reconstruction and Development to fund the purchase of 13 locomotives for the Cairo Metro Line 2, according to Al Shorouk. The agreement was inked on 8 December 2015.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.