Egypt, EBRD sign two €1.5M grants for projects of renovating locomotives and railway freight system worth €1.5 million

CAIRO – 21 August 2019: Egypt and the European Bank for Reconstruction and Development (EBRD) signed on Monday two grants allocated to projects of renovating locomotives and developing the railway freight system worth €1.5 million (LE 28 million).

The grants were signed by Minister of Investment and International Cooperation Sahar Nasr, and Director of the European Bank for Reconstruction and Development (EBRD) Office in Egypt Khaled Hamza.

The first grant will be directed to assist the National Authority for Railways of Egypt in the development of the current shipping business and in studying the establishment of a separate subsidiary, the establishment of a tracking system for goods and the establishment of an appropriate administrative and organizational structure for that company; this is in addition to studying the transfer of assets and re-evaluation, according to Ministry of Investment’s statement.

The statement added that the second grant will be allocated to assist the National Authority for Railways of Egypt in the advisory work for the purchase of 100 new railway tractors, which will be contracted through cooperation between the Ministry of Transport and the European Bank for Reconstruction and Development worth € 290 million.

Minister Nasr explained that the transport sector is a top priority for the ministry in terms of attracting investments and preparing cooperation strategies with international development partners, as directed by President Abdel Fatah al-Sisi to complete the progress in the sector in various fields.

The minister said that the Ministry of Investment and International Cooperation provided funding and grants to the transport sector worth $6 billion, recognizing the significant impact of this sector on improving economic performance and livelihood of citizens and sustainable development throughout the country.

Director of the European Bank for Reconstruction and Development in Egypt Hamza said that the bank's total investments in Egypt amounted to €5 billion in many fields, mainly the industrial sector, development projects and infrastructure, according to the priorities of the Egyptian government.

He stressed that the bank is keen to continue strategic cooperation with Egypt.

Hamza pointed out that the two grants will contribute to the development of this vital sector to accelerate economic growth, and benefit from the results of the comprehensive economic reform program, which set the environment for the Egyptian economy to attract investments in all sectors, especially transport sector.