The Asian Infrastructure Investment Bank (AIIB) has approved a €250 million (US$268 million) loan to Egypt for the Alexandria-Abou Qir Metro Line Project.
Aiming to increase access to efficient, safe and low-carbon public transportation in the city of Alexandria, the project will upgrade and electrify the existing Alexandria-Abou Qir line. Twenty metro stations along the 22-kilometre corridor will be modernized, 13 stations and 16 kilometres of which will be elevated.
The project is co-financed with the European Bank for Reconstruction and Development, European Investment Bank and Agence Francaise de Development. AIIB’s support is expected to add value to enhance the quality of project preparation and implementation, especially on incorporating climate-resilient aspects in the project design.
Upon completion, it will be the first sustainable high-capacity metro line in Alexandria, a fast-growing industrial city with five million inhabitants. It is Egypt’s largest seaport, handling 75% of the country’s imports and exports.
“The upgrade and electrification of the rail line will improve the quality of public transportation for Alexandria’s burgeoning population, resulting in a modal shift from more polluting, road-based methods of transport to a sustainable, electric transport network that contributes to significant reductions in greenhouse gases and air pollutants," says Konstantin Limitovskiy, AIIB vice-president for investment operations (Region 2).
The investment supports Egypt’s Paris Agreement commitment towards implementing its Nationally Determined Contribution, in which this project is included. The upgraded line will also improve public services, significantly increasing capacity and the level of service needed to cater for future demand.
At the COP27 meeting in November 2022, AIIB and other development partners signed an agreement with the Egyptian government to support the country’s efforts to boost renewable energy and stimulate climate action through its country-led programme: Nexus on Water, Food and Energy (NWFE).
The NWFE programme will comprise a total investment of US$14.7 billion under Egypt’s National Climate Change Strategy. AIIB has committed to contribute to the implementation of the NWFE Energy Pillar, which is expected to mobilize at least US$10 billion in investments for the installation of 10 gigawatts of solar and wind energy by 2028.
The initiative will also include the retirement of 5GW of inefficient fossil fuel capacity by 2025, leading to a substantial reduction in natural gas consumption and greenhouse gas emissions, estimated at around 17 million tonnes of carbon dioxide equivalent (CO2e) per year.