The European Investment Bank (EIB) has agreed to provide EUR 1.9 bn (EGP 34.7 bn) in financing to support the development of Egypt’s public transportation and back investment by COVID-hit companies, namely small- and medium-sized enterprises (SMEs), Invest-Gate reports.

EIB will extend EUR 1.1 bn (EGP 20.1 bn) for the National Authority for Tunnels (NAT) to build three transport projects, besides earmarking EUR 800 mn (EGP 14.6 bn) for the National Bank of Egypt (NBE) to bolster SMEs in mitigating the Coronavirus disruptions, according to the bank’s press release on July 15.

Concerning the EUR 1.1 bn loan, it will support the Egyptian transport sector, which contributes 4.6% to the country’s GDP and creates about 6.2% of domestic jobs, Minister of International Cooperation Rania Al-Mashat affirmed.

On his part, Transport Minister Kamel El Wazir confirmed that the fund for the transport sector includes EUR 240 mn for the upgrading of the Cairo Metro Line II, noting that the European Bank for Reconstruction and Development (EBRD) and Agence Française de Développement (AFD) are keen to offer the EUR 260 mn (EGP 4.76 bn) remainder finance for project completion.

Since the inception of bilateral strategic partnership in 1979, the EIB has introduced total loans of a combined value of EUR 10 bn (EGP 183 bn), while the ongoing portfolio stands at EUR 2.3 bn (EGP 42.1 bn), Al-Mashat stated, underscoring that among the projects to be rehabilitated under the EIB funding are Alexandria Tramway and Abu Qir Rail Line Upgrade.