The deal is worth 750,000 Kuwaiti dinars ($2.5 million) and will encompass technical, economic and environmental feasibility studies for the construction of a 570 km railway system linking Egypt and Sudan, according to the ministry.
Al-Mashat signed the agreement as a part of the activities of the joint annual meetings of Arab Financial Institutions that are currently being held in Jeddah, Saudi Arabia.
The KFAED is a Kuwaiti public institution that relies entirely on its own resources for the provision of loans and other kinds of development assistance, according to the fund's website.
The KFAED has contributed $3.6 billion to the funding of 54 development projects in Egypt since 1980, in addition to 14 technical grants equal to $48.6 million.
The Egyptian Ministry of Transportation announced in February that the preliminary studies of Egypt-Sudan railway lines have been completed.
The new railway line between the two countries was first proposed in 2010 and was revived in 2018 as a platform for the export of Egyptian products to Sudan, Central Africa and the rest of the African continent.
Following the visit, a high-level transport coordination committee between Egypt and Sudan was formed to follow up on the building of the railway.
Egypt and Sudan established a joint railway committee in 2008 to promote railway connections between the two countries.