Egypt’s transport ministry signed on October 13 deals totaled at USD 571 mn with Chinese contractor AVIC International for setting up and maintaining the planned electric train project, Invest-Gate reports.

Aiming to link the under-development New Administrative Capital (NAC) with Salam City, NAC, and 10th of Ramadan City, AVIC agreed on a 13-year maintenance contract, amounted to USD 110 mn. Besides, USD 461 mn worth of agreements were inked for implementing the monorail’s civil works, notably with Egyptian contractors such as Orascom Construction, Arab Contractors, Petrojet, and Hassan Allam Construction, according to a recent official statement.

The 70-kilometer line is set to be finalized within 24 months and serve merely 350,000 passengers per day from 11 stations, Transport Minister Kamel El Wazir stated, highlighting that construction works have already kicked off on-site as of last May.

The signing came after Bombardier Transportation agreed to deliver the project in partnership with two Egyptian firms, namely Orascom Construction and Arab Contractors. Under the 30-year contract, the consortium will build, operate, and maintain the planned electric rail line, laying the cornerstone for providing access to the promising African railway market.

Besides, earlier this year, China agreed to lend Egypt USD 1.2 bn for the project’s construction, involving USD 739 mn, at an interest rate of 1.8%, for its infrastructure, and USD 461 mn – with a 2% interest rate – for the train vehicles’ provision. The loan is repayable over 15 years, with a five-year grace period. An initial agreement for the loan was signed in September 2018, during President Abdel-Fatah El-Sisi’s visit to China.