Egypt has signed a EUR 205 mn loan agreement with the European Bank for Reconstruction and Development (EBRD) to fund the revamping of the Cairo Metro Line 1, Invest-Gate reports.

The EBRD loan will support the Egyptian National Authority for Tunnels (NAT) with the partial rehabilitation of Cairo Metro Line 1, which will help alleviate traffic congestion and increase the capacity of the said line, according to a statement by EBRD.

“The funds will finance urgent works on Line 1 – the oldest of the Cairo underground lines – which remains the backbone of the system and is used by 500 mn customers per year. Investments will increase the line’s capacity by 40% by reducing headway (the time between trains) from 3.5 minutes to 2.5 minutes, thereby improving levels of safety, comfort and service reliability. The project will also introduce on-the-job training opportunities for young people,” the statement reads.

The loan will be also complemented by a EUR 350 mn loan provided by the European Investment Bank, in addition to a EUR 50 mn loan from the French development agency – Agence Française de Développement.

Cairo’s metro transport system currently comprises three lines and the fourth is under construction. Line 1 is 42.5 kilometers long and has 33 stations, which offer direct connection from the north to the south.

It is worth mentioning that Egypt is a founding member of the EBRD and has been a country of operations since 2012. To date, the bank has invested more than EUR 4 bn in 84 projects in the country.