European Loan to Give Egypt New Rolling Stock

The European Bank for Restructuration and Development (EBRD) is loaning Egypt National Rail (ENR) €125 million to buy in new, energy efficient rolling stock. The deal will allow ENR to buy six trains to improve the efficiency, reliability and overcrowding of its railway system.

The EBRD is loaning the Egyptian government the money, and this will be passed onto the ENR.

The upgrade of the passenger train service will reduce overcrowding on the Cairo to Alexandria route where the trains in question will operate. It will also improve safety on the network and reduce operating costs associated with maintaining older trains. This will in turn improve the efficiency of the service and help the national economy with a new and reliable rail transport system. Part of the deal will be able to improve security on the service for travellers, in particular women travellers.

In return, Egypt is privatising much of its rail system. Elements of train servicing and management will be outsourced to private companies through a Supply and Maintain contract.

The deal and reforms have been done under in conjunction with the World Bank.