Egyptian National Railways (ENR) expects to award a contract to supply 700 train coaches in the next few months.

The frontrunners are Hungary’s Ganz Motor and Dunakeszi.

The final price is still under negotiation.

Ganz will supply the bogies, or chassis, and Dunakeszi the steel cars.

Hungarian Export-Import Bank has signed a letter of intent to extend a €900m ($1bn) loan to Egypt to finance the purchase of the coaches.

The loan has a 12-year tenor plus five years’ grace at an annual interest rate of 1.26 per cent.

ENR will also receive a €100m grant covering 80 carriages.

Russia’s Transmasholding was also competing for the contract, after it signed a memorandum of understanding (MoU) with ENR to supply and finance the 700 coaches.

Egypt is investing in modernising its 9,750-kilometre railway network.