4 November 2011
Promoter – Financial Intermediary
National Authority for Tunnels (NAT)
Extension of Line 3 (Phase 3) of the Cairo Metro with 17 km to serve the main transportation corridors of urban greater Cairo.
The project is part of the Greater Cairo's Transport Master Plan and is expected to greatly reinforce the public transport system in this area, thus promoting a positive modal shift from private cars and therefore alleviating congestion and associated environmental problems, contributing to climate change mitigation.
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Proposed EIB finance (Approximate amount)
EUR 600 million
Total cost (Approximate amount)
EUR 2418 million
The project has to meet the environmental and social requirements of the Bank based on EU policy. If located in the EU, the project would fall under Annex II of EIA Directive 85/337/EEC as amended, leaving it up to the competent authority to decide whether an EIA is required or not. A full ESIA is required for metro projects by the Egyptian legislation, including public consultation. The Promoter is at an early stage of the EIA process and in the preparation of the project's resettlement related documents. The Bank shall verify if the EIA process, including public consultation, is carried out in accordance to the Bank's environmental and social requirements and that appropriate mitigation and compensation measures are properly identified and adopted as part of an Environmental and Social Management Plan. The legal and policy framework for compensation, resettlement and rehabilitation under the project is defined by the relevant Egyptian laws and regulations and by EIB's guidance note on involuntary resettlement. An acceptable progress on these aspects will include the preparation of a Resettlement Framework (RF) and a Resettlement Action plan (RAP).
The project has to comply with the basic principles of the EU policy on procurement, in particular as established in Directives 2004/17/EU and 2004/18/EU, and with the EIB's Guide to Procurement. As usual, the Bank will include a clause to this effect in the finance contract. The Promoter has already started the procurement process by launching the prequalification processes for both the consultancy services for works supervision and for the construction works. The Bank has reviewed the corresponding prequalification documents and has provided its comments. Both tender notices have been published in Egyptian newspapers and in the OJEU. During appraisal, the procurement procedures followed by the Promoter will be analysed in order to ensure that the project is being procured on the basis of an open and international competition and in line with the principles of transparency and fairness. The procurement plan of the Promoter will also be carefully analysed.
Signed - 14/11/2012