The European Investment Bank (EIB) and the Arab Republic of Egypt have signed a EUR 1.12 billion (US$ 1.38 billion) agreement to support investments in the rehabilitation and expansion of metro and tram systems in Alexandria and Cairo. The EIB financing will contribute to increasing the availability and improving the quality of public transport systems in the two cities, where 30-35% of the country's population live and work. This new operation is in line with the EU bank’s climate action objectives and comes in support of the government’s national priorities.

EIB financing will support three large-scale projects in the sector. The first investment will support the rehabilitation and extension of the existing 13.8 km-long El-Raml tram in Alexandria. The second will support the rehabilitation and upgrade of an underused 22 km-long urban railway in Alexandria into a high-frequency metro (the Abu Qir Metro), adding metro stops and improving road safety by removing at-grade crossings. The third project will support the rehabilitation of the 23 km-long metro line 2 in Cairo that has been in operation for 23 years and requires urgent upgrades of its electrical and mechanical systems.

The EIB financing contract will be signed in two tranches. The first tranche of EUR 600 million (US$ 735.8 million)signed and the second tranche of EUR 528 million (US$ 647.5 million) will be signed this year.