Egyptian government has finalised an agreement with China’s leading state-owned AVIC to cooperate on building Egypt’s first electric traction system project, transport minister Hany Dahy announced today.
Electric traction refers to the use of electricity as an energy source instead of the traditional fuel sources.
The project will be with investments worth US$1.5 billion.
During a press conference held on Monday to highlight the results of Egyptian President Abdel Fattah al-Sisi’s visit to China, minister Dahy referred that local construction firms would undertake the establishment of 40% of the project.
The Egyptian minister further said the electric traction project would help reduce traffic disruptions in Cairo.
The new two-way railway will connect cities of El-Salam, Obour, New Heliopolis, Shorouk I and II, 10th of Ramadan and the country’s new capital.
Aviation Industry Corporation of China (AVIC), established on April 17, 1951, is China’s largest aerospace and defense manufacturer.