Cairo Light Rail Transit project secures a USD 250 mn soft loan from Chinese companies

Fresh funds for Cairo LRT project: Chinese companies Aviation Industry Corporation of China (AVIC) and China Railway Major Bridge Engineering Group will provide the National Tunnels Authority (NTA) with a USD 250 mn soft loan to finance the fourth phase of the Cairo Light Rail Transit (LRT) project, Asharq Business reports, citing government officials it says are familiar with the matter. The two companies will round up the funds from international institutions and banks.

REMEMBER-The two companies inked a framework agreement with the NTA earlier this month to design and construct in collaboration with local subcontractors the 16 km fourth phase of Cairo’s LRT project, which will extend the route to 10th of Ramadan City. AVIC — the main contractor for the LRT project — also signed an MoU for the fifth phase of the project, which will extend into the new capital, as well as an MoU for a light electric train that will link Al Rehab to the new capital.

Where will the money go? The funds will be used to install electrical and mechanical systems, including central control and signaling and communications equipment.

Egypt will pay up for the rest: The NTA will provide the financing for the construction work, which includes building the stations and laying the tracks, and is set to determine the total cost of this work by the end of the fiscal year.

China ? Egypt’s LRT: The Export-Import Bank of China (China Eximbank) agreed to lend the government some USD 400 mn in September to finance the third phase of the project, which will be implemented by AVIC. The Chinese lender also agreed back in 2019 to extend a USD 1.2 bn loan for the initial phases of the LRT’s construction.