The European Bank for Reconstruction and Development (EBRD) and the Ministry of International Cooperation (MOIC) of Egypt have signed a Memorandum of Understanding (MoU) aimed at delivering a significant improvement in the quality of services provided to the Egyptian people in the transport sector.
Under the MoU, the EBRD will aim to contribute to the rehabilitation of the Heliopolis tram link between the Ramsis and Almaza areas in Cairo with the overall cost estimated to be US$ 500 million.
The EBRD expects to provide an investment package of US$ 250 million divided in two tranches. A sovereign loan of up to US$ 125 million would finance infrastructure works to be implemented by the National Authority for Tunnels. The second tranche is a loan of up to US$ 125 million potentially to a private company for the procurement of rolling stock and for the operation and maintenance of the fleet. The Heliopolis Tram Project is a continuation of the EBRD’s engagement in the development of Cairo’s urban transport system and forms part of the Bank’s wider integrated approach for the sector, which focuses on the lack of integration of transport modes in the capital.
In preparation, the Bank has mobilised grant funds from the EBRD Infrastructure Project Preparation Facility (IPPF) to fund the feasibility study and conceptual design of the project. In addition, the Bank will seek to mobilise grant funds to be used for the implementation of the project.