Funding will go towards rehabilitating a tram line and a railway line in Alexandria and a line in Cairo's underground metro
Egypt and the European Investment Bank (EIB) discussed activating the financing earmarked for three projects aimed at improving the transportation sector in the country, the Ministry of International Cooperation has said.
The funding worth €1.1bn (about $1.29bn) has been recently approved for the National Authority for Tunnels to cover rehabilitating a tram line and a railway line in the Mediterranean city of Alexandria and a line in Cairo's underground metro, according to the statement published on the ministry's Facebook page late Sunday.
EIB's director of operations for neighboring countries Flavia Palanza said "the bank will continue providing financial and technical support for Egypt’s development plans, with a focus on sustainable infrastructure and social inclusion," according to the statement.
Egypt and EIB have already signed several agreements in the first half of this year including one worth €122.7m ($143m) for water and transportation sectors and another one for €100m (about $117m) to support small and medium enterprises by Banque du Caire.
EIB has been working with Egypt since 1979 and the total of agreements signed since is worth €9.7bn ($11.3bn) focusing on sustainable development and supporting the private sector.
Egypt's transportation sector has been beset by corruption and deadly accidents and it was among the country's weakest assets but there are ongoing steps to tackle this problem.
According to the General Authority for Investments and Free Zones, Egypt has climbed from the 118th in 2014 in the global roads quality ranking to 75th in 2018 thanks in part to increased funding for the transportation sector.
Investments worth LE77bn (aboout $4.8bn) have been directed to the sector in 2018/19 as part of 2018/2022 medium-term plan of sustainable development.