Egypt inks $1.2bn deal with China for electric rail link to new capital
Export-Import Bank of China to reportedly fund electric railway network project in Egypt
Egypt has signed an agreement with Export-Import Bank of China to finance an electric railway network linking various cities to the east of its capital, Cairo.
The state-run Kuwait News Agency (Kuna) reported the financing agreement for the electric rail project was signed by Egypt’s National Authority for Tunnels and the Chinese investment bank’s vice president, Sun Ping.
The project will reportedly link the cities of Al-Salam, Al-Obour, Al-Shourq to the country's New Administrative Capital near Cairo.
Additional information is about the project is awaited, but Kuna said the electric trains will reach up to 120km/h.
Egypt is keen to modernise its rail infrastructure and has previously spoken about securing technological and financial support from China to help upgrade its ageing transport network.
However, while it seeks Chinese resources for its rail project, Egypt has reportedly faced difficulty working with Chinese firms on other projects.
In 2018, Construction Week reported that negotiations between Egypt and property developer China Fortune Land Development over building a new capital city near Cairo had failed. It was believed that neither party could agree on terms for sharing revenue made from the megaproject.