CAIRO – 3 October 2022: The World Bank Group (WBG) announced the approval of a $400 million development financing CAIRO-agreement to develop sustainable infrastructure within the transport sector in Egypt, supporting the transition towards low-carbon transport along the Alexandria–the sixth of October–Greater Cairo Area (GCA) railway corridor.
Inside the framework of the Cairo Alexandria Trade Logistics Development Project, a railway might be constructed to diminish traffic. This may provide freight trains between the Alexandria Sea Port and the newly constructed sixth of October Dry Port, with another path to the west of Greater Cairo. The operational bypass may even allow 15 container trains per day by 2030, and as demand increases, 50 trains by 2060 to this dry port, together with additional freight trains flowing between the Alexandria Port, Upper Egypt, and the Red Sea.
This project will strengthen the railway network in Egypt, certainly one of the most important railway networks within the African continent; enhancing the country’s green transition and move towards low carbon emissions. Furthermore, the WBG estimates that the project will reduce greenhouse gas emissions by 965,000 tons over 30 years.
The Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat said that development financing approved by the WBG has a term of 29 years, including a 7 years grace period, while also including technical and institutional support for the National Railways Authority, emphasizing that this may even enhance Egypt’s national efforts to extend private sector participation in development efforts.
Al-Mashat added that the brand new project comes throughout the framework of H.E. President Abdel Fattah El-Sisi, the President of the Arab Republic of Egypt’s directives to utilize partnerships with the event partners to realize the 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 within the green economy transition. The project is consistent with the national objectives to speed up efforts to develop sustainable infrastructure and reduce harmful emissions through the expansion of green projects, consistent with Egypt’s Vision 2030 and the National Climate Change Strategy 2050; also coming ahead of COP27.
The project, as per Al-Mashat, also enhances the efforts of international partnerships with multilateral and bilateral development partners to support efforts towards the Sustainable Development Goals (SDGs). The Minister also identified that throughout the development financing portfolio, SDG 9: Industry, Innovation and Infrastructure, accounting for 22.3% and encompassing 35 projects value $5.9 billion. Moreover, the project supports the green transition, a part of the $26 billion portfolio of adaptation and mitigation projects value $11.8 billion.
The Minister also stated that the Government of Egypt, since 2014, has been committed to development efforts and climate motion. Al-Mashat explained that each one development projects include a component related to green transformation, making an allowance for environmental standards, which is clear in adaptation and mitigation projects supported by development partners.
“This operation is an element of a wider set of efforts dedicated to offering timely and comprehensive support to Egypt’s economic development and climate change plans,” said Marina Wes, WBG Country Director for Egypt, Yemen, and Djibouti. “We hope that through supporting more job creation, including for ladies, a cleaner environment, and providing safer mobility, the operation will contribute towards a brighter and more prosperous future for all Egyptians,” added Wes.
The WBG, certainly one of Egypt’s key development partners, can also be participating in discussions on the
Egypt Country Platform for NWFE Program, a nexus of water, food and energy, which reflects COP27 objectives in going from pledges to implementation. Last June, a high-level delegation from the WBG’s Board of Executive Directors visited Cairo, and issued a press release showing the bank’s commitment to proceed supporting development priorities in Egypt.
The continuing development finance portfolio between Egypt and the WBG includes 15 projects value $5.7 billion within the sectors of health, entrepreneurship and SMEs, transport, and social protection, amongst many other areas.
