AfDB extends €145m loan to Egypt for railway upgrades

The Board of Directors of the African Development Bank has approved a loan of €145 million to finance reliability and performance upgrades to rail system under the Egypt National Railways Modernisation Project.

The AfDB said in a statement on Tuesday that the funding would be used to enhance operational safety and to increase network capacity on national rail lines.

Egypt’s Minister of International Cooperation, Dr Rania Al-Mashat, said, “Safe, accessible, convenient and green transport systems will be crucial to achieving sustainable development. The improvement and expansion of Egypt’s rail system through the ENRMP allows for active mobility and enables the urban and rural development through an inter-modal linked system.

“Technology and innovation, and a robust commitment to public transport will all be vital components of building back better.”

According to the statement, rail passenger and freight traffic in Egypt are expected to increase to 15 percent and 10 percent respectively by 2029 as a result of the bank’s loan and other investments in the project.

“Currently, 8 percent of passenger traffic and 6 percent of freight traffic respectively move by rail. The planned upgrades are expected to benefit low-income Egyptians, about 40 percent of the population, who rely on trains as an affordable mode of transport,” it said.

The AfDB said the government of Egypt had committed significant investment to upgrade the country’s railway infrastructure through rail renewals, modernisation of signaling and the purchase of new rolling stock.

Under the ENRMP, a state-of-the-art, cost-effective train protection system will be installed on 950 km of train line along the busy routes connecting Alexandria in the north to Negh Hammadi in the south, and Port Said in the east, according to the statement.

“The newly approved project will enhance the multimodal transportation environment in Egypt, and the efficient movement of people, services and goods,” said Malinne Blomberg, the bank’s Deputy Director General for the North Africa region.

“This operation is fully aligned with the Bank’s strategy for interventions in Egypt, contributing to sustained and inclusive economic growth, and more specifically, developing infrastructure that supports expansion of the private sector and job creation,” she added.