Egypt’s National Authority for Tunnels (NAT) has signed a $1.24bn contract with a consortium of Chinese firms to build a light railway transit (LRT) in 10th of Ramadan City.

The 66km LRT will extend the under-construction new administrative capital city with Greater Cairo including Al-Salam City, Ramadan 10 City, Obour City, Badr City and Shorouk City, according to a report from Chinese news agency Xinhua.

Construction work on the project is expected to begin within two to three months.

The main contractors are China’s AVIC International and China Railway Group.

MEED understands the Export-Import (Exim) Bank of China will provide funding for the project.

The LRT is designed to accommodate 340,000 passengers daily and contribute in reducing traffic on the Cairo-Ismailia highway by about 30 percent.