Egypt is planning to sign two agreements, totaling $665 million, with Chinese firms for the extension of its Light Rail Transit system and enhancing connectivity of Cairo with Egypt’s growing urban centers.
This involves a $515 million agreement for Phase 4 of the LRT and another $150 million for joint studies for Phase 5 of the LRT project, increasing China’s involvement in Egypt’s expanding urban transport network.
What Would the $665 Million Agreement Construct?
In particular, the first deal worth around $515 million would be used to construct the fourth phase of the light rail line.
The development of such a rail line is expected to increase the length of the current electric rail and expand connections among the eastern suburbs, industrial areas, and new cities in Cairo.
As for the second deal worth roughly $150 million, it will be used to conduct joint research on the future fifth phase.
Therefore, the agreement is not just about construction but also about preparing for the next development of the country’s urban rail transport system.
How China Helps Egypt Construct Urban Railways
Chinese companies were actively involved in the development of the current railway network in Egypt.
It should be noted that the construction of the LRT is conducted within a wider program to build a railway connection between Greater Cairo with New Administrative Capital and 10th of Ramadan City, as well as to serve several other urban communities.
Initially, the project received funding through a $1.24 billion contract with a Chinese consortium.
These new deals were made at the time that the Chinese President, Xi Jinping, visited Egypt, where both countries hope to strengthen ties economically and strategically. The Chinese government has already shown much interest in Egypt, making significant investments in various fields in Egypt.
Why Is LRT Important for Egypt?
The Egyptian government invests heavily in developing its rail infrastructure due to its increasing population and developing cities outside existing urban hubs.
The LRT is an electric train that will connect Greater Cairo and emerging developments to the east, making Egypt less reliant on road infrastructure and helping access newly developed areas.
At the moment, the network serves areas such as El Obour, El Shorouk, Badr City, Future City, and the New Administrative Capital, among others, with some expansions expected soon.
And Then What?
In the short term, efforts will be made to finalize the two agreements and move forward with the fourth-phase project. On the other hand, the studies related to Phase 5 will be essential in deciding the future course of action.
For Egypt, the $665 million agreement is yet another step taken towards establishing an integrated electric transport network that could support the country’s emerging cities.
Conclusion
Egypt’s $665 million China-subsidized LRT agreements will pay for the fourth-phase construction of the country’s urban rails while setting the stage for the fifth phase of the process.
The projects emphasize the increasing significance of electric rail in linking Cairo to Egypt’s emerging urban communities.
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