$30 trln in additional investments required to achieve net zero in 8 hard-to-abate sectors
The Net Zero Industry Tracker 2024 estimates that $30 trillion in additional capital will be required across ...
EIB earmarks EUR 1.128 bn for promoting low-carbon transports in Cairo, Alex
The European Investment Bank (EIB), and Egypt signed a EUR 1.128 billion agreement to support investments in the rehabilitation and expansion of metro and tram systems in Alexandria and Cairo within the framework of efforts to cut greenhouse gas emissions.
The EIB financing will contribute to increase the availability and improve the quality of public transport systems in the two cities where 30-35 percent of the country’s population live and work.
The EIB financing will support three large-scale projects in the sector. The first investment will support the rehabilitation and extension of the existing 13.8 km long Raml tram in Alexandria.
The second one will support the rehabilitation and upgrade of an underused 22 km long urban railway in Alexandria into a high frequency metro “Abu Qir Metro”, adding metro stops and improving road safety by removing at grade crossings.
The third project will support the rehabilitation of the 23 km long metro line 2 in Cairo that has been in operation for 23 years and requires urgent upgrades of its electrical and mechanical systems.
The EIB financing contract is signed in two tranches. The first tranche of 600 million is signed today and the second tranche of 528 million will be signed early next year.
In addition to the EIB’s financing, the EIB Economic Resilience Initiative and the EU Neighborhood Investment Program (EU NIP) provided grants for technical assistance and advisory supporting the preparation of the three projects.
These investments will lead to greenhouse gas emissions reduction, due to the expected modal shift and will therefore contribute to the Bank’s Climate Action objective, as well as to the implementation of Egypt’s Intended Nationally Determined Contributions (INDCs), as defined in the Paris Agreement on Climate Change of December 2015.
“Understanding the value of transport infrastructure is at the heart of informed policy-making. Benefiting more than half a million passengers a day, we are not only reshaping Egypt’s economic geography but also meeting social and environmental targets to drive sustainable growth. We value our partnership with EIB that has been instrumental in pushing the frontiers of ESG standards that push international cooperation across various sectors to varying projects, including the private sector” said Dr. Rania A. Al Mashat, Minister of International Cooperation.
Flavia Palanza commented on the signature: “As European Unions’ Climate Bank, we give high priority to clean urban transport projects such as trams and metros. Today, we signed the EUR 1.128 billion government agreement supporting this important goal for our joint cooperation. This large-size financing responds to the ambitious objectives of the Egyptian government to improve people’s life by building sustainable transport infrastructure and reducing CO2 emissions The EUR 600 million first tranche of the EIB support is signed today and we expect to sign the second tranche early next year. We are looking forward implementing these key investment projects with our Egyptian partners and the other IFIs.”
For his part, European Union Ambassador to Egypt Christian Berger stated that, ‘’Sustainable urban mobility will contribute to our all well-being and quality of life. The Egyptian Government and our EIB partners have put great efforts into bringing green, affordable and safe transport to the Egyptian citizens, to facilitate commuting in dynamically developing urban areas. The EU is committed to support green growth in Egypt in line with the spirit of the European Green Deal. Green, clean and sustainable transportation will reduce the environmental impact, socio-economic costs and has a strong potential to create jobs.’’
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