Egypt has agreed a $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, through to the new capital that is being built.
According to a Reuters report, the 68km long rail network will connect the 10th of Ramadan City to the planned New Administrative Capital. The loan has a 1.8% interest rate and matures in five years, the report said, citing Egypt’s transportation minister.
$461 million of the loan will be for infrastructure, while $739 million will be used for trains, Hisham Arafat explained.
The railway aims to move 350,000 passengers daily, with a total speed of 120km/hour. Five state-owned companies and three private corporations will construct the project, the minister said. He asserted that it was a necessity for citizens in Eastern Cairo.
In 2015, Egypt announced ambitious plans to construct a new metropolis 45km east of Cairo as part of the government’s efforts to lure back foreign investment that has been scared away by years of political upheaval following the uprisings in 2011.
