Egypt’s National Railway Authority is set to borrow EGP 18 billion (approximately $582 million) from a consortium of local banks, according to Asharq Business.
This funding is aimed at supporting two major railway projects scheduled to begin in the second half of this year. One of the sources revealed that the loan would finance two projects.
The first project involves the civil works for the “Tanta-Mansoura-Damietta” railway line, spanning 238 kilometers.
The second project is the “Siwa-Matrouh-Jargoub” railway line, which is approximately 300 kilometers long.
The anticipated loan will cover part of the costs of these two projects. The National Railway Authority plans to finance the remaining costs through its resources, as per one of the sources.
Additionally, the rest of the funding for the project is expected to be secured through a loan from the French Development Agency and the European Bank for Reconstruction and Development, amounting to 250 million euros, already agreed upon for the Tanta-Mansoura-Damietta line.
Currently, efforts are underway to secure international financing for the second project at favorable terms.
In a strategic move, the authority aims to generate up to 40 million US dollars during the current fiscal year 2023-2024.
This revenue will come from selling train tickets in dollars to foreigners and Arabs, as part of the government’s latest efforts to increase the country’s foreign currency reserves.
Egypt’s Ministry of Transport has set ambitious goals to enhance its passenger transport capacity. It aims to increase the daily passenger capacity of the new railway network to 1.5 million by next year, up from 900,000 in 2014.
This expansion is part of Egypt’s broader efforts to modernize and extend its railway infrastructure, enhancing connectivity and supporting economic growth.
