Egypt yet to finalise trains deal with Chinese firm

08 November 2015

Chinese firm to build and finance new passenger line and trains manufacturing facility

  • Planned new passenger line to link East Cairo and the New Capital City
  • $500m factory to be procured on a build-operate-transfer (BOT) model

Egypt’s National Authority for Tunnels (NAT) and the Egyptian National Railways (ENR) have yet to conclude negotiations with Chinese firm Avic for the construction of a new passenger line equipped with electric trains and a trains factory to be located in the Nile Delta, respectively.

“The negotiation between NAT & Avic is still ongoing,” says Mohamed Mahmoud Ahmed, general director for Strategy ad Investment Projects at the ENR, referring to the planned passenger line that will connect East Cairo with the New Capital City.

Local media reports had earlier cited that the project to connect East Cairo and the New Capital City already commenced with the acquisition of $1.5bn worth of electric trains from China’s Avic. The electric trains were thought to commence operating between the 10th of Ramadan City and El-Salam City last August.

The first planned project involves building a new passenger line with electric trains from El-Salam city to 10th of Ramadan and Belbes city, in addition to a freight line between 10th of Ramadan and Belbes cities, says Ahmed. 

Manufacturing: Negotiations with Avic for the planned $500m factory to manufacture catches and locomotives in the Abu Zabal region along the Nile Deta are also ongoing.

Build-operate-transfer: The scheme is to be procured using a build-operate-transfer (BOT) model.

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