Back to the complete issue
Tuesday, 1 December 2020

Bechtel in pole position to snag master contract for Cairo Metro Line Six

Bechtel looks set to land the master contract for Cairo’s sixth Metro line, Transport Minister Kamel El Wazir said yesterday at an AmCham event, according to a report by Reuters’ Patrick Werr.

On the fast track: El Wazir said his ministry is “working on a memorandum of understanding with Bechtel for feasibility studies and implementation of the USD 5 bn, 30 km sixth metro line” and that “just yesterday … we reached near-agreement. We told them to submit a written offer. If we reach agreement we will begin working at once and expedite all the contracts and agreements.”

Financing for the new Metro line is already in place from Canada, the US, Britain, France and Japan, Reuters quotes El Wazir as saying. Our take: Look for this to be coming from export credit agencies angling to ensure their countries’ companies get a piece of the action; Export Development Canada and similar agencies in Russia and Hungary have all recently provided finance to the rail industry.

This is just the latest on a really long list of rail projects the government has unveiled in recent weeks, most of which the Sisi administration expects to wrap up by 2024, El Wazir suggested yesterday. Six major rail agreements were inked at an industry conference last week, the Transport Ministry said, and the Sovereign Fund of Egypt and SCZone are partnering with Orascom Construction, Samcrete, Hassan Allam Holding and Connect Information Technology in the new National Egyptian Company for Railroad Industries (NERIC), which plans to invest as much as USD 10 bn in the sector “over the next few years,” the Planning Ministry said.

Projects already underway or in the pipeline include a 19km first phase of Cairo Metro line four, a line linking Six October to the Nile, a multi-bn fast-rail line, at least two lines in Alexandria, and two monorail projects in Cairo. We had a detailed rundown on plans to upgrade the nation’s ailing rail network back in February, just before corona.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.