Transport sector's development financing portfolio records $6.5B to implement 24 project

CAIRO - 5 January 2022: The Minister of International Cooperation, Rania A. Al-Mashat and the Minister of Transportation, Kamel Al-Wazir, held a meeting at the Ministry of International Cooperation’s headquarters, alongside the presences of both minister’s assistants, to review the Ministry of Transportation's projects, and the soft development financing for the transport sector in 2022.

Al-Mashat said that developing a sustainable infrastructure for Egypt’s transportation sector is one of the main pillars that the state relies on to promote climate action, and to lead the regional transformation towards a green economy.

The Minister added that the transportation sector is one of the main areas of cooperation between Egypt and its multilateral and bilateral development partners through development financing and technical support.

The transportation sector is part and parcel of the national priority towards developing infrastructure, as this was one the sectors that received the most development financing from multilateral and bilateral development partners in 2020, Al-Mashat pointed out. The Minister noted that the development of the transport sector is reflected in the increased participation of private sector engagement in development efforts.

Al-Mashat added on to explain that multilateral and bilateral development partners have strong partnerships with Egypt in terms of implementing vital transportation projects, as the state had established the development of its railway system in cooperation with development partners. Moreover, development partners also contributed to the development of the metro’s stages. The Minister also spotlighted the inauguration of dry ports, and their importance in the transition towards a green economy, alongside the support of development partners.

Al-Mashat emphasized the Government of Egypt’s commitment to its 2030 Vision, alongside developing environmentally-friendly transportation networks, as the country is currently implementing many mega national projects, including a high-speed electric train that will enhance connectivity across governorates and cities, and industrial areas, as well as a monorail that connects 6th of October City to the New Administrative Capital.  

This meeting comes within the framework of directives from President Abdel Fattah El-Sisi to strengthen the compatibility of development financing to the UN Sustainable Development Goals (SDGs), and the country’s own national agenda; Egypt Vision 2030, as well as in accordance with the President’s directives for ministers to regularly follow-up on development projects to ensure the achievement of the desired results.

For his part, the Minister of Transportation Kamel Al-Wazir applauded the fruitful cooperation with the Ministry of International Cooperation in projects, in the provision of the necessary development financing, and in ensuring strong partnerships with development partners in the various fields of the transportation sector. Developments in transportation are reflected in the high rank of Egypt in international competitive indexes in this sector, emphasizing the importance of projects implemented by the Ministry in bringing about comprehensive and sustainable development in improving the lives of citizens.  

Lieutenant General Kamel Al-Wazir reviewed the projects that are planned to be implemented in the next phases, the size of investments that are part of the Ministry of Transportation, the Ministry’s financial position regarding ongoing projects, and the completed projects. The Minister also shared some of the ongoing projects including, the development of the signaling systems on railways, the mobile transport units, the monorail headed to the New Administrative Capital from the 6th of October City, the metro renovations, the rehabilitation of the Raml Tram Line, alongside other projects. Al-Wazir also emphasized the speedy completion of the environmental impact and economic feasibility studies for projects being planned in 2022.

Referring to directives from the country’s political leadership to support all private sector companies as Egypt’s investment climate is quite promising with various investment opportunities in transportation, Al-Wazir added that the private sector is an essential pillar in implementing projects, be it the Egyptian or international private sector. This opens the door to strengthened cooperation with development partners in railways, through the operation and maintenance of new lines, or in seaports through the management and operation of multi-purpose station projects.

The transportation sector is one of the areas that benefited the most from development financing, as the portfolio includes $6.5 billion to implement 24 projects, making up for 25% of the Ministry of International Cooperation’s ongoing development financing portfolio.

Last Monday, President Abdel Fattah El-Sisi held a meeting with the Ministerial Economic Group in the presence of the Prime Minister Mostafa Madbouly, the Governor of the Central Bank of Egypt Tarek Amer, where Rania A. Al-Mashat reviewed cooperation with development partners,  the soft development financing agreements in support of the national development priorities, and the total development financing secured across sectors in 2021, including in housing, environment, Micro, Small and Medium Enterprises (MSMEs), transportation, education, energy, health, agriculture, and irrigation. Al-Mashat also presented the grants across various sectors and the private sectors, including in education, housing, water and sanitation, and in support to startups; alongside the framework agreements with France, Spain and China in enhancing economic cooperation to contribute to supporting national priority projects.