The Ministry of International Cooperation of Egypt signed two Memoranda of Understandings (MoU) with the European Bank for Reconstruction and Development (EBRD), for the transport and water sector, reported Zawya.
The first MoU will focus on rehabilitating the Heliopolis tram link between Ramis and Almaza districts in Cairo and provide EGP 2.2 billion ($250 million) out of the EGP 4.4 billion ($500 million) needed, according to Ahram Online.
Half of the $250 million provided by EBRD will finance infrastructure work to be carried out by the National Authority for Tunnels. The second half will be loaned to a private company to procure rolling stock and to cover 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.” EBRD said in a statement.
The second MoU will provide EGP 1.3 billion (€100 million) to develop a water irrigation system in a program developed by the Ministry of Water Resources and Irrigation of Egypt.
EBRD has funded about 34 projects in Egypt to date, bringing the total cumulative EBRD investment to €1,737 million. EBRD’s investments include projects in the financial sector, agribusiness, manufacturing, and infrastructure.