The European Bank for Reconstruction and Development (EBRD) has revised its loan offer from $150m to $300m to cover all instead of half of the 100 new diesel locomotive units required by the Egyptian National Railways (ENR).
MEED reported in October 2016 that the ENR was engaged in funding negotiations with Germanys Siemens, in addition to the EBRD and the US GE, for the procurement of 100 units of locomotives.
It is understood that the German trains manufacturer has dropped out of the financing negotiations for the project.
The source had earlier said that the EBRD has offered the best terms of the three companies.
The negotiation with EBRD is progressing although no timeline has been set to finalise the agreeement, MEED has been told.
This implies that the ENR could miss its original plan to release the tender for the consultancy package of the rolling stock supply before end of the first quarter of 2017.
The plan to purchase new locomotives is in line with Egypts plan to reform its freight rail sector by increasing fleet availability and improving operational efficiencies and reliability. Future plans include the separation of freight operations and the introduction of track-access charges, which will provide a framework for future private sector involvement in the railway market, the EBRD had said.
The rail agency is also currently reviewing offers for a separate contract for the supply of 700 non-air-conditioned coaches.
It is understood that Russias Transmashholding and Hungarys Ganz Motor and Dunakeszi have formed a joint venture and submitted a technical and financial offer for the contract. They are bidding against a Latvian company who also offered to finance the project.