Egypt signed a memorandum of understanding with the European Bank for Reconstruction and Development to fund the development of Heliopolis tram, the bank said in a statement on Tuesday.
The EBRD will provide $250 million out of $500 million needed to rehabilitate the Heliopolis tram link between the Ramsis and Almaza areas in Cairo, the statement said.
Egypt also signed a €100 million ($114 million) deal with the French Agency for Development (AFD) in April to participate in the project to reconstruct the Heliopolis line stretching over 14 kilometres, Tarek Aboul Wafa, head of the central administration for planning at the National Authority for Tunnels, told Ahram Online.
The project is estimated to take three years, said Aboul Wafa.
The EBRD will launch a bid to choose the consultancy that will provide the studies for the project at a cost of €100,000 ($114,000) in the form of a grant to Egypt, he added.
The National Authority for Tunnels will acquire half of the EBRD contribution in the form of a loan to implement infrastructure works while the procurement of rolling stock and the operation and maintenance of the fleet will be undertaken by a private company using the second half of the EBRD contribution, the statement said.
Terms of the loan have not been decided yet, said Aboul Wafa.
The EBRD began operations in Egypt in 2012 and has since invested over €1.7 billion ($1.94 billion) through 34 projects.