EU to loan Egypt €1.1bn for financing three transport projects

The European Investment Bank (EIB) will loan Egypt by year’s end €1.1 billion in form of financing package for the implementation of three transport projects in the Arab country.

The package will come in two installments. The first tranche will take place in December and valued at €600 million, the Egyptian cabinet said in a statement.

The second installment, €528 million, will be released in January next year.

The funds will finance the renovation works of the Raml tram in Alexandria for €130 million, electrification of the Abu Qir-Alexandria railway to the tune of €750 million and extension of Cairo Metro Line 2 for a budget of €240 million.

The transport projects financing is part of €1.9 billion approved by EIB board for Egypt. The remaining loan facility will go for the support to the small and medium-sized enterprises sector battered by the coronavirus pandemic.