ALEXANDRIA ABU QIR URBAN RAIL PROJECT

Promoter – Financial Intermediary

NATIONAL AUTHORITY FOR TUNNELS

Location

• Egypt

Description

The loan concerns the rehabilitation and upgrade of the obsolete and underused 21.7 km long, mostly elevated, urban railway line Abu Qir. More specifically, financing will support rebuilding and adding metro stations, as well as removal of all the at-grade intersections of the current line.

Additionality and Impact

The project consists of the rehabilitation and upgrade of the obsolete and underused 21.7 km long urban railway line Abu Qir, in Alexandria, into a high frequency metro line to enhance the role of public transport in the city and promote sustainable mobility for citizens. By supporting the shift of traffic to a more sustainable transport mode, 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. By providing safe and affordable transport also to more vulnerable groups, such as people with reduced mobility and women, further benefits are unlocked, for example more egalitarian access to jobs and study opportunities.

The project shares the development priorities of NDICI Global Challenges' Thematic Programme Priority Area 2, which seeks to promote the green transition through 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 both the Investment Plan of the Egyptian Ministry of Transport as well as Alexandria's Strategic Urban Plan 2032.

The project benefits from the EIB's favourable financing conditions as it provides long tenor and affordable pricing and the EIB's contribution was crucial for crowding in other financiers, filling a large financing gap as well as bringing its sector knowledge and high standards which allowed the project to go according to original timetable.

Objectives

The aim is to turn the existing Abu Qir suburban railway line into a high frequency, modern and efficient metro with much higher transport capacity, speeds and comfort. The upgraded metro line will encourage the usage of public transport and thus promote sustainable mobility.

Comments

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.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 750 million

Total cost (Approximate amount)

EUR 1764 million

Environmental aspects

The promoter has to ensure, that the environmental and social procedures are in line with EIB applicable rules , including screening of environmental and social impacts, an Environmental and Social Action Plan, Stakeholder Engagement Plan and an Environmental Management Plan. The project's relevant key documents will be published in line with the EIB's procedures.

Procurement

The promoter has to ensure, that the procurement procedures are in line with the applicable EIB procurement guidelines.

Status

Approved - 20/09/2023