Egypt has signed a contract with Russia for the manufacture of 700 air-conditioned train cars for an estimated value of US$5 billion as a substitute for the Hungarian loan that the ministry decided not to take.
“The contract reflects cooperative relations with Russia in joint manufacturing, something we have ignored for a long time,” said Transport Minister Saad al-Geyoushi. “There will be more joint projects.”
“We are improving the transport industry because Egyptian citizens deserve a better service,” he said, adding that this project will create many job opportunities.
According to the contract, the Russian company is to provide sources for funding the project.
The government has also signed a contract with the European Bank for Reconstruction and Development to finance the purchase of 13 trains for the second metro line with 100 million euros.
Transport Ministry spokesperson Ahmed Ibrahim said they will be manufactured by the Arab Organization for Industrialization in cooperation with Russia.
“The Egyptian component of the manufacture will be 50 percent,” he said, adding that delivery will start one year after the signing of the final contract.
Informed sources said the Hungarian loan that President Abdel Fattah al-Sisi signed in August is still in place for the government to compare to other loans and decide once Parliament ratifies them.
Edited translation from Al-Masry Al-Youm
