Agence France Development (AFD) and European Investment Bank (EIB) will finance 78 per cent of the €360m ($400m) budget required for the rehabilitation of the Raml tramway in Alexandria, Egypt.

AFD will supply €100m while EIB will supply €180m, according to the Egyptian investment ministry.

The Egyptian government is expected to raise the remaining funding required.

The client, Egypt’s National Authority for Tunnels (NAT), has already undertaken the initial step for the project. It invited firms to submit prequalification documents by 30 May for the project’s consultancy contract.

The tram network meant for rehabilitation is about 13.7 kilometres long and extends from the Victoria station to the Raml station and then on to Manshya square. There are 28 stations.

The tramway began operating in the1860s and is the second-oldest in the world.