MoF Egypt Green Line - Euler Hermes Buyer Credit

Borrower (s)

National Authority for Tunnels Egypt

Industry

Infrastructure/Rail

Area of finance

Project & Infrastructure Finance

Region

Africa

Countries

Egypt

Deal Overview

The Egyptian railway system is one of the largest in the MENA-Region but suffered severely due to lack of investment and maintenance, and is now marked together with water and energy, a top priority in Egypt’s infrastructure development plans. The Railway Infrastructure Master Plan focuses on (i) improving the availability and quality of transport, (ii) enhancing transport capacity and (iii) optimizing the network layout, i.e., connecting the main port, tourist attractions, capital cities and industrial areas, developing a network of lines of 15,000km by 2030.

The Green Line, in line with Egypt’s 2030 Vision, is part of the first phase by accommodating cargo and passenger trains passing through Cairo, New Capital City, Alexandria and Fayoum, enhancing the connectivity between these key cities on the Red and Mediterranean Sea as well as to provide easy, affordable, and efficient public transportation, causing an increase in the welfare of the Egyptian population. The main benefits will include a reduction of road traffic and associated pollution, a reduction of carbon emissions by 70% compared to the current car and bus transportation and an increase of 15% of the inland freight transport via rail. Green Line will serve as the blueprint for phase 2, comprising the Red Line (Hurghada-Luxor) and the Blue Line (6th October City-Luxor-Aswan). The project also reflects the commitment by the Government of Egypt to reach zero net carbon emissions by 2050 in alignment with the UNFCCC and IAE guidelines.

The Green Line will allow for express passenger services, regional passenger services and freight train operation. It begins at the Gulf of Suez, crosses the Nile River south of Cairo at 15th of May Station, then travels up to Burg El Arab where it diverges into two branches (sections), one towards Alexandria and the other towards Marsa Matrouh along the North Coast. The Line passes through six governates and has a length of approximately 660km.

The Borrower is the National Authority for Tunnels (NAT), a government agency under the jurisdiction of the Ministry of Transport, incorporated in 1983 to develop and operate metropolitan line projects in Egypt. The Egyptian Ministry of Finance provides a guarantee for the entire amount.

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Deal Volume

$2.12bn

Financial Close

28 December 2022

Sources

Submitted by participant(s), TXF article

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