TANTA-EL MANSOURA-DAMIETTA RAILWAY UPGRADING

The project will finance the upgrading of the 118 km Tanta-El Mansoura-Damietta railway line, which includes the doubling of the section El Mansoura-Damietta (65 km), the re-signaling of the whole line and possibly ancillary investments in railway stations, a freight yard and a freight link to Damietta port.

The project aims at filling crucial gaps in the Egyptian Railway sector, which has seen prolonged periods of underinvestment leading to fully used capacity. The connection between the Damietta Port, which is one of the most important ports in Egypt for cargo, passing through the El Mansoura area with a high population density to Tanta is a key traffic corridor in the Nile Delta providing the wider Cairo area with transport services. The railway sector has been identified as a key priority by the Egyptian Authorities under the national investment plan. The EU and Egypt as key partners will cooperate in advancing socio-economic goals set out in Egypt's "Sustainable Development Strategy Vision 2030" with a view to build a stable and prosperous Egypt.

The project consists of the upgrading of the 119 km Tanta-El Mansoura-Damietta railway line. The project scope includes the upgrading of the double-track section Tanta-El Mansoura (54 km), the doubling of the single-track section El Mansoura-Damietta (65 km) and the re-signaling of the whole Tanta-El Mansoura-Damietta railway line. Moreover, the project includes the purchase of railway maintenance machines to be used on the Egyptian railway network, including the Tanta-El Mansoura-Damietta line project contributes to the EU and EIB sustainable transport policy by improving rail technical standards in terms of safety, capacity and speed. The project is expected to improve the quality of rail services in Egypt and contribute to modal shift from road to rail, thereby enhancing sustainable transport and reducing related negative transport externalities, in line with EU objectives and the Bank's Climate Action target.

The project will improve the railway infrastructure and accessibility of the area it passes through, furthering development of the Region. Therefore, it contributes to the EIB's objective of development of social and economic infrastructure.

The project yields acceptable benefit streams from time savings, reduced operating costs, improved safety and reduced environmental cost of the transport system.

The project will bring improved accessibility of some Egyptian major urban areas along the Nile delta, such as El Mansoura and Damietta, and significant benefits to both passengers and freight transport.

The EIB provided technical assistance to the Promoter for project preparation. The main tasks included revision of existing feasibility studies, update of cost estimate and Cost Benefit Analysis as well as preparation of Environmental and Social Impact Assessment and Resettlement Policy Framework. The EIB will co-finance a TA for supporting the Promoter's Project Implementation Unit aimed at supervising the various stages of project implementation. The EIB is also supporting Egyptian National Railways in implementing gender improvements elements in the project preparation. Moreover, the EIB with the help of a consultant will prepare tender documentation for the procurement of railway maintenance machines aimed at improving the railway network conditions. The technical advice resulted in an improvement of the quality of project documentation and a positive impact on the project. EIBs financial contribution will significantly improve ENRs funding conditions in terms of grace period, maturity, interest rates and will have a high signalling effect to attract favourable funding in the future needed to address ENRs investment needs in network reliability and safety.

The project is expected to be implemented mainly within the existing right of way. If located in the EU, the project would fall under Annex I of the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU and therefore be subject to EIA. The potential impact on any conservation areas will also need to be appraised. The compliance of the procedures in place with the EIB environmental and social standards will be analysed during the appraisal.

It is required that the promoter ensures that implementation of the project will be done in accordance with the EIB's Guide to Procurement.