European Bank for Reconstruction & Development  (EBRD) has signed memorandums of understanding (MoUs) to finance water and transport projects in Egypt.

It plans to finance the $500m rehabilitation of the Heliopolis tram link between the Ramsis and Almaza areas in Cairo.

EBRD is planning a $250m investment package. A $125m loan to the National Authority for Tunnels will finance infrastructure works. A further $125m will finance rolling stock procurement, operation and maintenance. A grant is being mobilised for feasibility studies and early design work.

EBRD has also agreed to support the Ministry of Water Resources & Irrigation in modernising its irrigation systems.

Agriculture uses more than 86 per cent of the country’s total water resources. Community-based rather than centrally managed systems are expected to improve efficiency.

EBRD is a key lender in Egypt’s power sector, and is preparing to finance renewables projects under feed-in tariff and build-own-operate schemes. Development banks are providing the country with billions in foreign currency loans to finance equipment import, while the government tries to tackle a scarcity of foreign currency.

It is also financing the acquisition of rolling stock for the Cairo Metro’s Line 2.