In November 2015, the EBRD signed a senior sovereign loan of up to €175 million, to be co-financed with the European Investment Bank (EIB), to part-finance the purchase of 13 air-conditioned train sets (eight wagons per train) to be operated on Cairo Metro’s Line II, as well as spare parts and maintenance equipment. The project will address Cairo’s urgent infrastructure needs, promote greater sustainability and efficiency of the metro services and contribute to decreasing the carbon emission profile of the sector.
This is the first investment of the Bank’s Cairo Urban Transport Integrated Approach which consists of a series of investments for the period 2015-2020. It aims to improve and reform public transport services in Cairo and its surrounding areas to achieve greater commercialisation of services, enhanced private sector participation, improved regulation and increased opportunities for on-the-job training as well as the use of carbon monetisation mechanisms (in other words, where carbon emission reductions are monetised as offsets).
Furthermore, the development of a Nationally Appropriate Mitigation Action (NAMA) will be considered, with the aim of supporting meaningful mitigation actions through financing, technology transfer and capacity building. Through the NAMA, Egypt would seek international recognition for its climate mitigation work and results, establish a mechanism to measure impacts, further embed the paradigm shift towards low carbon technology, and potentially access additional climate finance from funds such as the Green Climate Fund.
