The Chinese Export-Import Bank (Chexim) has approved a new loan of $400 million to the Egyptian government to finance the third phase of the Light Rail Transit (LRT) project.
The Light Rail Transit project is one of the initiatives the government has been working on since 2014 to connect the heart of Cairo with urban and industrial communities in the eastern regions of the capital.
However, the opening of its first stations was delayed until last year, which were established after securing a $1.2 billion loan from the Chinese Exim Bank in 2019.
According to Bloomberg, the Chinese funds are designated for purchasing 22 trains, each consisting of 6 cars, along with installing all operational systems for the project, which opened its first and second phases in July 2022.
The third phase of the Light Rail Transit project extends for 20.4 kilometers and will have 4 stations.
“The new loan will be directed towards covering the costs of electrical and mechanical systems, signals, communications, central control, and ticket gates, which will be implemented by Avic, the Chinese main contractor for the project,” An informed source stated.
Another source reported that administrative procedures for the loan will be completed by the end of this year, with the loan agreement set to be presented to parliament early next year for approval of the actual disbursement.
