CHINA CHEXIM BANK TO LOAN EGYPT US$400M FOR LIGHT RAIL TRAIN PROJECT

The Export-Import Bank of China (Chexim) extended an additional loan of $400 million to the Egyptian government. According to unnamed sources cited by Asharq Business, the loan will be allocated towards financing the third phase of Egypt’s ambitious light rail train (LRT) project.

The LRT project, initiated by the government in 2014, aims to establish a modern transit system connecting Cairo with urban and industrial communities in the eastern region. However, the project faced delays, and the opening of its first station was postponed until 2022. To overcome financial challenges, the Egyptian government secured a loan of $1.2 billion from Chexim in 2019.

An undisclosed source familiar with the matter revealed that the loan’s administrative procedures are expected to be finalized by the end of this year. Subsequently, the loan agreement will be presented to the cabinet early next year for approval, enabling the disbursement of funds for the actual implementation of the project.

The $400 million loan from Chexim will primarily be utilized to cover the expenses associated with the electrical and mechanical systems, signals, communications, central control, and ticket gates. These critical components will be installed by AFIC, the Chinese company serving as the main contractor for the project.

Furthermore, the loan funds will also be directed towards purchasing 22 trains, each consisting of six cars. This significant investment from China demonstrates its commitment to supporting Egypt’s transportation infrastructure development and fostering bilateral cooperation between the two nations.

The LRT project has already witnessed the successful completion of its first and second phases in July 2022. With the forthcoming financial assistance from Chexim, Egypt is poised to make further progress in enhancing its public transportation system and facilitating efficient connectivity for its citizens.

SOURCE: EgyptToday