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Wednesday, 22 April 2020

Railway projects face delays as international lenders divert USD 1.8 bn in loans

Railway projects could be placed on ice as disbursal of USD 1.8 bn in international funds are delayed: Some USD 1.8 bn in international loans earmarked for railway projects will not be disbursed until the middle of 2021 as lenders reprioritize financing in response to the covid-19 pandemic, Al Mal reports, citing informed sources. The Transport Ministry was hoping to access USD 1.5 bn in funding for the project to convert the 22-km Abu Qir-Alexandria railway into a subway before the end of 2020, and a further USD 300 mn to add additional tracks to several passenger lines. Lenders for the projects include the European Investment Bank, European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and the French Development Agency.

Railway Authority land up for grabs: The National Railway Authority is hoping get a cash infusion to keep some projects on track through an estimated EGP 15 bn land offering for residential and commercial development, according to Al Mal. The offering from MOT for Investment and Projects, the authority’s investment arm, has received ministry approval to offer a mixed-use complex in in Mansoura, as well as land on Al-Tayaran street, in Dakahlia’s Talkha, and in Ramlet Boulaq, adjacent to the Nile City Towers.

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