22 October 2022
Promoter – Financial Intermediary
NATIONAL AUTHORITY FOR TUNNELS
The project consists of the rehabilitation of the existing metro line 2 of the Cairo metro network. The rehabilitation includes the renewal of the signalling system, power supply and parts of the tracks. Allocation under Framework Loan (FL) 2020-0144.
Additionality and Impact
The project is the rehabilitation of Cairo metro Line 2 to ensure continue reliable and safe metro operations and add much needed extra transport capacity. The project will improve the role of public transport in Cairo and promote sustainable mobility for its citizens. By supporting the shift of traffic from fossil fuelled private cars to collective and electric transport, the project will reduce negative externalities of road traffic (noise and air pollution, greenhouse gas emissions, road accidents and congestion), improving travel times and costs. In addition, the project contributes to more egalitarian access to jobs and study opportunities.
The project shares the development priorities of Neighbourhood, Development and International Cooperation Instrument (NDICI), Global Challenges' Thematic Programme Priority Area 2 on sustainable mobility. The project also contributes to Team Europe Flagship 5 on Connected Economies, to a wide range of Sustainable Development Goals (SDGs) and to the Investment Plan of the Egyptian Ministry of Transport.
The proposed operation has benefitted from substantial EIB advice and expertise and from a technical assistance (TA) funded by the EIB under the ERI TA envelope. EIB participation was key to the preparation of the feasibility study, and will remain important in terms of filling a funding gap and allowing the project to go forward according to the originally foreseen timetable. The project benefits from EIB's advantageous funding terms as it provides long tenor and affordable pricing.
The project is expected to deliver significant time savings to existing users of metro line 2 and to provide additional capacity to accommodate an increasing demand that would otherwise be absorbed by less environmentally friendly modes of transport. The upgrade of the metro line will improve the reliability of the existing metro service and further reduce headways during peak hours. It will represent a fast and affordable transport solution to the population, in particular to those who cannot afford owning a private car. Furthermore, the project will result in vehicle operating cost savings, lower air emissions and less accidents stemming from the expected modal shift from road to public transport.
The Project is part of the Urban Transport Infrastructure Framework, the aim of which is to finance large public transport projects in the cities of Alexandria and Cairo in Egypt over the next 5 years.
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Proposed EIB finance (Approximate amount)
EUR 240 million
Total cost (Approximate amount)
EUR 614 million
If the project was located within the EU, it could fall under Annex II of the EIA Directive 2011/92/EC, thus requiring a decision by the competent authority to determine whether a full environmental impact assessment (EIA) has to be carried out.
The Bank shall investigate environmental and social aspects during appraisal and verify that the promoter has followed the relevant EU environmental and social principles, standards and practices. The Bank shall also verify the acceptability of the project in terms of likely environmental impacts and proposed mitigation and compensation measures.
The Bank will require the promoter to ensure that any procurement process is consistent with the Bank's procurement guidelines
Approved - 17/11/2022