Egypt Cabinet endorses EIB’s Cairo Metro Line II loan deal
Egyptian Cabinet has approved Wednesday an European Investment Bank (EIB) soft loan deal to finance the purchase of 13 metro trains to improve services on line 2 of the Cairo Metro.
Earlier on October 5, 2015, EIB and Egypt’s National Authority for Tunnels a €75 million ($85.1 million) soft loan deal for the purchase of additional rolling stock to improve services on line 2 of the Cairo metro, to alleviate traffic congestion and promote public transport in urban greater Cairo.
The project consists of the manufacturing and supply of 13 metro trains, each 8 cars long, for operation on line 2 of the metro of Cairo.
The new trains will be used to increase service provision and reduce existing levels of overcrowding on line 2 of the Cairo metro. The improved services are expected to attract passengers currently making their trips by car and bus, therefore reducing pollution, noise and CO2 emissions from road vehicles. The project is therefore relevant in the context of climate change mitigation.
The Cairo metro is used by millions to get around the bustling city. According to the BBC in 2013, four million people ride the metro on a daily basis at a cost of just 1.00 Egyptian ($US 0.13) per journey.
The metro plays an important role in combating Cairo’s traffic woes. A World Bank study recently found that Cairo’s infamous traffic costs Egypt 47 billion pounds (US$6.5 billion) annually and is expected to reach 105 billion pounds (US$14.6 billion) by 2030.
