Railways Authority seeks to secure larger budget

CAIRO – 10 June 2017: The Egyptian Railways Authority budget in the fiscal year 2017/2018 must be LE 9 billion, instead of the currently allocated LE 3 billion, in order to continue its developmental projects, Minister of Transportation Hesham Arafat said on Saturday.

The minister stated that securing financial credits is a great obstacle facing the ministry in execution of the renovation plan of the railways network in Egypt.

The ministry is working in collaboration with the Ministry of Investment and International Cooperation to acquire soft loans for financing railway development projects, Arafat stated.

They are set to sign a €290 million agreement with the European Bank for Reconstruction and Development (EBRD) to buy 100 rail-tractors.

The Ministry of International Cooperation signed an agreement with EBRD in May to borrow €186 million on behalf of the Fayoum Water and Wastewater Company to expand sanitation services.

The EBRD is currently negotiating to support the railway and renewable energy sectors in coordination with the Ministry of Transportation and the Ministry of Electricity and Renewable Energy.

Active in Egypt since 2012, EBRD has allocated a total of €2.3 billion to finance 43 projects in the sectors of finance, agribusiness, manufacturing, services and infrastructure projects.