The Egyptian Ministry of International Cooperation today announced the signing of its second financing agreement with the European Bank for Reconstruction and Development (EBRD) after the Bank’s Governors approved Egypt’s transformation into a fully-fledged country of operations on October 30, 2015.
Her Excellency Dr. Sahar Nasr, Minister of International Cooperation, signed the loan agreement at MEED’s Mega Projects Conference, which took place at the Four Seasons Hotel Nile Plaza on December 8-9, 2015. The signing ceremony included H.E. Dr. Saad El Geyoushi, Egypt’s Minister of Transport, along with the EBRD delegation which comprised Ms. Hildegard Gacek, Managing Director for the Southern and Eastern Mediterranean Region (SEMED), Mr. Philip Ter Woort, Head of EBRD Cairo office, and Ms. Susan Goeransson, Acting Director for Municipal and Environmental Infrastructure (MEI). Moreover, H.E Dr. Sahar Nasr witnessed the signing of the project agreement between the Bank, the National Authority for Tunnels, and the Egyptian Company for Metro Operation.
The loan agreement highlights the investment of EUR 100 million to finance the acquisition of 13 train sets for Cairo’s Metro Line II. It involves the upgrading of Cairo’s overall metro system, which is expected to save US$ 8 billion(4 percent of GDP) that is normally incurred due to road congestion. The Project is also expected to increase the availability of trains on Metro Line II by 88 percent, up from 79 percent.
“We appreciate the European Bank of Reconstruction and Development’s continuous support to the Government of Egypt’s efforts to achieve economic development, serve the Egyptian people, and improve their standards of living,” stated H.E. Dr. Sahar Nasr, Minister of International Cooperation. “It is no question that congestion is one of the main challenges we face in Egypt, and we truly believe that this project will have a significant impact in addressing the problem. We look forward to working with the EBRD to continue finding solutions to ameliorate traffic and transportation in Egypt—a key priority for all of us.”
Egypt has been a member in the European Bank for Reconstruction and Development since its establishment in 1991. In November 2012, Egypt was granted the status of a potential country of operations for three years during which the Bank’s investments reached Euros 1.37 billion in 29 projects serving priority areas for the Government of Egypt.