The World Bank has approved a $500 million loan to Egypt to support a government affordable housing project, Minister of Housing Moustafa Madbouly said in a press release on Wednesday.
Up to 170,000 housing units are to be built by the end of 2015 as part of the project, according to the statement, for a total of 250,000 housing units built over a period of a year and a half.
The units are being built in new urban communities to house low and medium-income Egyptians, who are to benefit from a subsidy of LE5,000 to LE25,000 on each unit, through the World Bank loan.
In September last year, while in the Unites States, Madbouly signed an initial agreement with the World Bank for a $1.5 billion loan for social housing and sanitation projects.
The Egyptian real estate market requires 500,000 new units each year, at least 65 percent of which is in the low-income category, Madbouly said last year.