Daily News Egypt

Egypt, AFD sign €50m agreement for Cairo Metro’s Line 1 renovation - Daily News Egypt

Advertising Area

Advertising Area

Egypt, AFD sign €50m agreement for Cairo Metro’s Line 1 renovation

Egypt and Germany’s cooperation portfolio has now reached about €1.7 bn, says Al-Mashat

The Egyptian government and France’s Agence Française de Développement (AFD) have signed a €50m financial rehabilitation deal that will renovate Cairo Metro’s Line 1, according to Minister of International Cooperation Rania Al-Mashat. 

According to a Sunday press statement by the ministry, the agreement was signed between Minister Al-Mashat, Ambassador of France to Egypt Stéphane Romatet, and AFD Country Director Fabio Grazi.

It falls under the multilateral cooperation between development partners, as it brings together the AFD, the European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB). The three entities have come together in the collaborative funding of the project, implemented by Egypt’s National Authority for Tunnels (NAT).

Minister Al-Mashat revealed that the project will renovate and modernise the Cairo Metro’s 44km-long Line 1, which runs north-south across the heart of Cairo, and connects with both Line 2 and Line 3.

The project will overhaul the line systems and infrastructure. A related purchase of new rolling stock under separate funding is intended to sustain the line’s efficiency and operation as it undergoes continued network expansion and increased demand.

Minister of Transportation Kamel El-Wazir stated that the signed agreement adds to the total funding of €605m that has already been allocated for Line One’s renovation.

He added that the EBRD has provided €205m while the EIB provided €350m. An additional €145m has come from the state budget, to cover the total cost of €751m, implemented by the NAT.

“The agreement also falls under the integrated comprehensive framework implemented by the Ministry of Transportation, where phase one covers the renovation of the railways, signals and communication and central control systems, as well as other railway and electro mechanic enhancements,” he added.

El-Wazir noted that the second phase would cover the procurement of metro cars at a cost of €650m.

Minister Al-Mashat also held a virtual meeting with German Ambassador to Cairo Cyril van Nun, during which they discussed ways to enhance economic relations between Egypt and Germany. They also discussed speeding up the procedures for the third stage of the debt swap between the two countries.

The minister announced that the volume of the cooperation portfolio between Egypt and Germany has reached about €1.7bn in total.

She indicated the cooperation portfolio included 48 projects, most notably the rehabilitation of hydroelectric stations and sanitation. This comes in addition to projects that are being implemented to improve drinking water and sanitation services, infrastructure, and improve public services and small- and medium-sized enterprises (SMEs).

Advertising Area

Breaking News

No current breaking news

Receive our daily newsletter