AfDB extends US$174.08mn loan to bolster Egypt's railway safety and reliability

AfDB railway 21 AprilThe African Development Bank (AfDB) has approved a loan of US$174.08mn to finance reliability and performance upgrades to the country’s rail system under the Egypt National Railways Modernisation Project (ENRMP)

The funding will be used to enhance operational safety and to increase network capacity on national rail lines.

Dr Rania A Al-Mashat, Egypt’s minister of international cooperation, 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.”

Rail transport is central to Egypt’s economy and competitiveness. Rail passenger and freight traffic are expected to increase to 15% and 10% respectively by 2029 as a result of the bank’s loan and other investments in the project. Currently, 8% of passenger traffic and 6% of freight traffic respectively move by rail. The planned upgrades are expected to benefit low-income Egyptians, about 40% of the population, who rely on trains as an affordable mode of transport.    

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

“The newly-approved project will enhance the multimodal transportation environment in Egypt, and the efficient movement of people, services and goods,” said Malinne Blomberg, AfDB’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.

 

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