Egypt-Sudan railway may be financed through Kuwait Fund

The Kuwait Fund for Arab Economic Development (KFAED) may fund the 900-km railway linking Egypt and Sudan, according to local reports, citing an unnamed government official.

The fund has agreed in principle to finance the project alongside the Egyptian and Sudanese governments, which the source says will cost some €1 billion ($1.2 billion).

A tender to hire a technical consultant for the project is also expected soon, and will be open to foreign bidders. The project, however, faces “technical difficulties” including “a discrepancy” between Egypt and Sudan’s train lines, the source said without elaborating. Sudan uses narrow-gauge track, while Egypt uses standard-gauge.

Egypt and Sudan last month signed an agreement to conduct feasibility studies for a rail connection that would run between Aswan and Wadi Halfa, providing a direct rail link between Alexandria and Khartoum.

The agreement was the latest of several other announcements of a planned railway link since Egypt, Sudan, and Ethiopia agreed to create a joint fund to raise capital for a network of cross-border railway lines and roads back in 2018.