Egypt has agreed a USD 1.2 billion deal with the Export-Import Bank of China (EximBank) to finance a light rail system from an industrial city on the outskirts of Cairo to a new capital it is building, according to a Reuters report.
The 68 kilometres long rail network will connect the 10th of Ramadan city to the new administrative capital.
The loan has a 1.8 per cent interest rate and matures in five years, stated the report, citing the Transport Minister Hisham Arafat.
Minister Arafat said USD 461 million would go to infrastructure and USD 739 million for trains.
Five state-run companies and three private ones are working on the project which is due to completed within two years, he added.
We remind that in August 2018, the National Authority for Tunnels signed a USD 1.24 billion contract for the construction of a light rail route serving greater Cairo. Work is carried out by a consortium of AVIC International and China Railway Group.
We also remind that in December 2018, the consortium awarded CRRC Sifang a contract to supply and maintain 22 six-car trains for the new line.
The light rail system will connect Greater Cairo and Sharqia Governorate to new urban cities in East Cairo, including the New Administrative Capital, El-Obour City, El Mostakbal, Heliopolis, El-Shorouk, Badr, Roubiki Leather City, and 10th of Ramadan.
Cairo operates a tram network, but the infrastructure is in very poor conditions and the rolling stock fleet is obsolete.