Photo courtesy of the Egyptian National Railway Authority (NRA)
The agreement was signed within the framework of the ongoing Cairo Alexandria Trade Logistics Development Project, according to a ministry statement.
Freight trains on the new railway corridor will run from the Alexandria Sea Port to the under-construction 6th of October Dry Port, thus decreasing the amount of goods transported by road.
This operational bypass will accomodate 15 container trains per day by 2030 and 50 trains per day by 2060.
Additional trains will also run between the Alexandria port, Upper Egypt and the Red Sea.
This project will strengthen the railway network in Egypt, one of the largest in the African continent, enhancing the country’s green transition, according to the statement.
The project will decrease greenhouse gas emissions by 965,000 tons over 30 years, according to the WBG.
Minister of International Cooperation Rania Al-Mashat said the project will be financed over a 29-year period, including a seven-year grace period.
Al-Mashat explained that the project both provides technical and institutional support for the National Railways Authority (NRA) and also enhances the country's efforts to increase private sector participation in development efforts.
She added that the new project comes within President Abdel-Fattah El-Sisi's directives to partner with development organisations to achieve national goals.
“This also reflects the strategic relations between the WBG and the Government of Egypt across various fields of developments, especially in sustainable infrastructure and in the green economy transition. The project is in line with the national objectives to accelerate efforts to develop sustainable infrastructure and reduce harmful emissions through the expansion of green projects, in line with Egypt’s Vision 2030 and the National Climate Change Strategy 2050; also coming ahead of [the 2022 UN Climate Change Conference (COP27)],” the minister added.
These projects strengthens international partnerships with multilateral and bilateral development partners to support efforts towards achieving the Sustainable Development Goals (SDGs), She added.
The minister said all development projects in the country since 2014 have included a green transformation component, reflecting the government's commitment to climate action.
“This operation is part of a wider set of efforts dedicated to offering timely and comprehensive support to Egypt's economic development and climate change plans. We hope that through supporting more job creation, including for women, a cleaner environment, and providing safer mobility, the operation will contribute towards a brighter and more prosperous future for all Egyptians,” said Marina Wes, WBG Country Director for Egypt, Yemen and Djibouti.
The WBG, one of Egypt’s key development partners, is also participating in Egypt’s Nexus on Water, Food and Energy (NWFE) Programme, which was launched in July to finance eco-friendly projects as part of the country's green transformation.
The ongoing development finance portfolio between Egypt and the WBG includes 15 projects worth $5.7 billion in the sectors of health, entrepreneurship and SMEs, transport, and social protection, among many other areas, according to international cooperation ministry figures.