Egypt signed an agreement with the European Investment Bank to receive the second tranche worth €200 million for the extension of Cairo's third metro line, Ahram news website reported on Thursday.

The European Investment Bank (EIB) agreed to lend Egypt a total of €600 million, of which Egypt received the first tranche of €200 million in 2012, to be repaid over 25 years with the same grace period. 

The project's total funding is €940 million provided by EIB, the French Development Agency (FDA) and the European Union.

The FDA is contributing €300 million in loans, repayable over 20 years with a seven-year grace period, while the EU is contributing €40 million.

Once fully completed, the third line is expected to run 40.4 kilometres from Cairo airport to Cairo University, passing through downtown Cairo and the densely populated working class district of Imbaba.