Egyptian PM in Negotiations with World Bank to Fund Rail Upgrade

Egypt’s Prime Minister Hisham Qandil met with World Bank Executive Director Merza Hassan recently to discuss plans to develop rail infrastructure as well as repair and upgrade carriages.

Egypt’s rail system is in desperate need of investment, following years of neglect, which have led to a series of major tragic accidents. Level crossings are operated by untrained and underpaid staff, who have been known to fall asleep or even abandon their posts during a shift. Train carriages are damaged and not air-conditioned, leading to uncomfortable and unsafe conditions for passengers.

Merza Hassan confirmed the World Bank was sympathetic to Egypt’s need for support in improving standards of safety and comfort. He said Egypt’s security is integral to that of the wider region, and help should be made available to help Egypt face its current challenges.

Egypt is currently negotiating a $4.8bn loan from the International Monetary Fund. Minister of Planning, Ashraf El-Arabi recently announced LE835m has been allocated for urgent maintenance, with LE635m from the Egyptian Treasury, and the remainder from the National Investment Bank.

The money is required for automating level crossings, installing modern control and safety mechanisms, spare parts, and purchasing new air-conditioned and second class carriages.