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Tuesday, 24 September 2019

Egypt to receive first tranche of USD 1.2 bn Exim loan for railway project this month

Is the electric railway getting the first tranche of China Exim Bank’s USD 1.2 bn loan this month? The Export-Import Bank of China (China Exim Bank) will disburse USD 105 mn to the Trade Ministry as a first tranche of a USD 1.2 bn loan to fund the East Cairo electric rail line by the end of September, sources close to the matter told Al Mal. The line will link Salam City with 10th of Ramadan City and the new administrative capital. The ministry and China’s Aviation Industry Corporation of China (AVIC) have completed all the necessary procedures to kickstart disbursals according to schedule, the sources said, adding that contractors would be paid immediately after the transfers are made. Local contractors, which include Orascom Construction, Arab Contractors, Petrojet, and Hassan Allam Holding, have already begun working on the project’s infrastructure.

Pressure to speed up construction schedule: Contractors have apparently been instructed to complete the project six months earlier than previously thought, tightening the construction schedule to 18 months instead of 24. Talks are ongoing to expedite supply contracts for the project, the sources said without explaining further.

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