The European Bank for Reconstruction and Development (EBRD) has approved the provision of a sovereign loan of up to €250m to Egypt to finance the upgrade of an existing rail line connecting downtown Alexandria and north-eastern district of Abu Qir into a high-capacity metro.
EBRD stated that the new financing will be directed to the implementation of infrastructure works to modernize and electrify the railway and implement related systems, including the upgrade of signaling, communication and central control systems, and the provision of new railway cars.
The bank explained that the project is consistent with the Bank’s strategy for Egypt and specifically with its priorities to improve the quality and sustainability of infrastructure services in the country by enhancing private sector participation as well as the transition to a green economy by financing the development of greener higher capacities in public transport.
Rania Al-Mashat, Minister of International Cooperation, said that the new financing supports the state’s direction to develop the infrastructure of the transport sector, enhance its sustainability, and push the transition towards a green economy.
Al-Mashat mentioned that Egypt enjoys regional leadership in the green transition through clear plans in various development sectors, such as transport, renewable energy and water, as well as the integrated national strategy for climate change 2050, which was launched during the activities of the United Nations Climate Summit in Glasgow this month.
She also pointed to the serious steps taken by the state in this regard and its efforts to push international moves towards overcoming climate change and hosting the next edition of the United Nations Climate Conference (COP27) in Sharm El-Sheikh.
EBRD has invested more than €7.7bn, since its inception in Egypt in 2012, supporting the implementation of 134 projects, more than 75% of which are for the private sector.
Egypt came on top of the European Bank’s list as the largest country of operations in the southern and eastern Mediterranean region during 2020, where the bank invested €1bn to finance 21 projects, representing 47% of its total investments in the region, and Egypt was the largest country of operations in 2018 and 2019.