EBRD allocates US$276M loan for the Alexandria-Abu Qir metro line

EGYPT – The European Bank for Reconstruction and Development (EBRD) has allocated a US$276.16 million loan to the Egyptian government as part of its “Green Cities” programme.

The funding will be used to upgrade and electrify a railway line between the port city of Alexandria and the city of Abu Qir in the northeast of the country.

The initiative is part of the implementation of the EBRD’s “Green Cities” programme which, in the case of Egypt, will encourage the reduction of carbon dioxide (CO2) emissions and traffic jams.

In addition to the transport sector, the two partners signed two other agreements in the green hydrogen and tourism sectors for the period 2022-2027.

This period will accelerate green projects in the main urban areas of the country of the pharaohs.

Alexandria is a fast-growing industrial city, home to 5 million people and Egypt’s largest seaport, handling 75% of the country’s imports and exports,” said EBRD.

Therefore, there is a strong need for green investments, including energy-efficient transport modes.”

The Green Cities programme was launched by the EBRD to enable cities to solve their environmental problems and improve the quality of life of their inhabitants.

The programme is supported by the Taiwan-Business-EBRD Technical Cooperation Fund and the Austrian Federal Ministry of Finance through the EBRD-administered Urban Regeneration and Environment Fund (Create).

In 2021, for example, the programme has included the City of October 6, located in the urban area of Cairo.

The Alexandria metro project, which will be managed by a private operator, will benefit from an improvement in the city’s air and noise levels.

According to decision-makers, the electrification of the line will allow for a shift from polluting road transport to a sustainable transport network.

The Project is expected to contribute to climate change mitigation resulting in terms of GHG emission reduction of approximately 260,000 tons of CO2 equivalent per annum.

As Alexandria is located along the Mediterranean coast which is vulnerable to climate-induced flood, storm surge, and sea-level rise, the Project will have an appropriate drainage system to protect the site against potential flooding from a 1 in 100-year storm recurrence event.

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