Egypt will borrow one billion dollars in a concessional loan from a Chinese bank, to finance the establishment of sanitation networks in the country's Nile Delta villages, the state's official news agency MENA reported on Monday, citing Housing and Utilities Minister Mostafa Madbouly.

Madbouly signed a deal with Gezhouba Group Company, one of the largest Chinese construction companies, to establish sanitation networks for 260 villages in the Delta governorates of Menoufiya and Gharbiya.

Three quarters of Egyptian villages do not have sewage systems, according to data from official statistics agency CAPMAS.

Egypt expects to sign a $200 million grant deal with China during the latter president’s visit to Cairo later this month. The grant will be invested in infrastructure, healthcare and Suez Canal development projects.