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Tuesday, 10 November 2020

Transport Ministry, EIB to sign EUR 1.1 bn financing agreements in December and January

DEBT WATCH- A EUR 1.1 bn financing package from the European Investment Bank (EIB) will officially be earmarked for Egypt’s public transport projects when the Transport Ministry signs contracts for the funding in December and January, according to a cabinet statement. The signing of the contract for the first EUR 600 mn tranche is scheduled for next month, and we will put ink to paper for the second EUR 528 mn tranche in January 2021.

Three projects will get funding, with EUR 138 mn going towards the renovations of the Raml tram in Alexandria, EUR 750 mn to the electrification of the Abu Qir-Alexandria railway, and EUR 240 mn will be allocated for the extension of Cairo Metro Line 2. The loan is part of a larger EUR 1.9 bn facility, with the remaining EUR 800 mn to be used for “covid-19 related business investment,” International Cooperation Minister Rania Al Mashat had said.

The Raml tram project might also receive up to EGP 2.5 bn in the coming period from local banks: The National Authority for Tunnels (NAT) is in initial talks with local banks for a loan of up to EGP 2.5 bn to partially finance the EUR 363 mn tram renovation project, reports Al Mal, citing sources close to the negotiations. Back in March, the EGP 410 mn tender to restore the tram was awarded to a consortium of French and Egyptian companies made up France’s Systra and Egis Rail and Egypt’s ACE Moharram Bakhoum and Projacs.

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