Leading multilateral development banks to co-finance major public transport project in Egypt.
The Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB) and Agence Française de Development are to co-finance a major public transport project in Alexandria, Egypt.
Aiming to increase access to efficient, safe and low-carbon public transportation in the city of Alexandria, the upgrade of the Alexandria-Abou Qir Metro Line will electrify the line, modernise 20 metro stations and elevate 16km of track.
Support from international banks is expected to enhance the quality of project preparation and implementation, especially on incorporating climate-resilient aspects in the project design.
Once finished, the line will become the first sustainable high-capacity metro line in Alexandria—a fast-growing city that is already home to five million people and Egypt’s largest seaport, which handles three quarters of the country’s imports and exports.
AIIB vice president, investment operations (region 2), Konstantin Limitovskiy explained: “This project is aligned with AIIB’s corporate strategy, thematic priorities and mission to finance Infrastructure for Tomorrow and sets an excellent example of enhancing connectivity via green infrastructure financing in the transport sector.”
The AIIB is providing $250m for the projects and Limitovskiy added: “The upgrade and electrification of the rail line will improve the quality of public transportation for Alexandria’s burgeoning population, resulting in a modal shift from more polluting, road-based methods of transport to a sustainable, electric transport network that contributes to significant reductions in greenhouse gases and air pollutants.”
The investment supports Egypt’s Paris Agreement commitment toward implementing their nationally determined contribution, in which this project is included. The upgraded line will also improve public services, significantly increasing capacity and the level of service needed to cater for future demand.