Egyptian Cabinet has approved Wednesday a three-year €100 million financing agreement signed with the European Bank for Reconstruction and Development (EBRD), Transport Minister Hisham Arafat said.
The loan will be repaid over 11 years, with a 1 percent interest and three-year grace period, designated to finance the purchase of 100 new locomotives, Arafat added.
Earlier on June 19, Egyptian government signed a financing agreement with EBRD to finance the purchase of 100 locomotives as part of the European bank’s strategy aimed to support the modernisation of the Egyptian railway system.
Also in June, Egypt signed a $575 million agreement with General Electric Co for GE to provide 100 new multi-use locomotives, 15 years of technical support and spare parts, and maintenance and upgrades of 81 trains.
The first shipment of 25 locomotives would arrive in 2018, as part of a plan to have 25 million tonnes of goods transported via railway by 2022.
The agreement also includes GE carrying out maintenance and upgrades on 81 trains the Egyptian National Railways bought in 2008, and training Egyptian engineers.