Kuwait Funds Rail Improvements in Egypt

Under a Memorandum of Understanding signed in April, Kuwait is to fund Railway projects in Egypt to the tune of $250m.

Technical and economic feasibility studies are to be undertaken for projects including a new signalling system along the line from Banha to Zagazig. Part of the funds will come from The Kuwait Fund for Arab Economic Development (KFED) and the Arab Fund for Economic and Social Development (AFESD) will provide the remainder.

The loan is in addition to applications to the World Bank, which are still under consideration, to develop the Egyptian Rail system. An international bid will be closing soon to redevelop the Tanta-Damietta line.

Railways in Egypt have suffered from lack of investment and general neglect under successive governments. Since the beginning of the Arab Spring a series of deadly accidents has beset the network, leading to demands that funds be found for improvements.

The Kuwait Fund for Arab Economic Development (KFED) exists to support economic development in Arab countries, and also provides technical assistance and training to recipient countries. The Arab Fund for Economic and Social Development (AFESD) is also based in Kuwait. All Arab countries are its members and the Fund takes particular care to conduct its activities with political neutrality.