World Bank approves $440 million loan for enhancing Egypt’s railways
The World Bank’s Board of Executive Directors approved a $440 million loan to support Egypt’s initiatives to enhance the safety and services of the country’s railways, the bank announced on Saturday.
The World Bank said that the Railway Improvement and Safety for Egypt (RISE) project will cost $681.1 million, including $241.1 million contributed by the Egyptian National Railways (ENR).
The project will focus on modernising the signalling of the Cairo-Giza-Beni Suef segment of the ENR network and supporting the reforms needed to enhance the ENR’s performance and competitiveness, according to the World Bank statement.
“Today, more than ever, there is a great need to develop sustainable infrastructure. Redefining smarter transportation solutions improves safety, enhances mobility, safeguards the environment, and strengthens job creation and economic growth,” said Rania Al-Mashat, Egypt’s Minister of International Cooperation.
She added that the project supports the momentum for reform and the demand for urban mobility and reliable public transport, integral to achieving the 2030 Sustainable Development Goals.
The ENR network comprises over 5,000km of rail tracks and primarily offers passenger services for low-income Egyptians.
About 270 million passengers boarded trains in FY 2019/20, up from 228 million in FY 2015/16 and 247 million in FY 2010/11. Over the years, the ENR has faced multiple obstacles that show there is a margin for improving its performance, namely in the realms of operations, cost recovery, maintenance, and customer service.
“This operation builds on the World Bank’s policy dialogue with Egypt in the transport sector, including on institutional and governance arrangements, and safety and regulatory aspects,” said Marina Wes, World Bank country director for Egypt, Yemen, and Djibouti.
