The National Authority for Tunnels (NAT), a subsidiary of the Ministry of Transport, is in talks with a consortium of more than five banks to secure a 14 billion Egyptian pounds (about $265 million) local loan to finance the fourth phase of the Light Rail Transit (LRT) project, a board member told Al Manassa.
The loan, expected at the start of the next fiscal year in July, will be guaranteed by the Ministry of Finance to cover civil construction for the 16-kilometer extension connecting the New Administrative Capital to 10th of Ramadan City.
The source, who requested anonymity, said the Ministry of Finance will guarantee the loan and the NAT will be responsible for interest payments, while the ministry will repay the principal according to the maturity schedule.
The funding is part of a broader $515 million budget for Phase 4. This includes a $240 million foreign loan—recently reduced by $10 million following a project re-evaluation—and $275 million in works to be funded in Egyptian pounds.
To cover the foreign component, the authority has finalized details for a $250 million loan from the Export-Import Bank of China (Chexim). These funds will pay for electromechanical works and equipment imported from abroad, managed by a Chinese consortium of AVIC International and China Railway Engineering Corporation (CREC).
The source explained that the 14 billion pound local portion will be directed toward civil works to be carried out by Egyptian contracting companies. Construction, which includes embankments, stations, and overpasses, is expected to begin in July.
The expansion is designed to quadruple the line's capacity. NAT plans to increase daily ridership to approximately one million passengers, up from the current 250,000. Existing operations currently run from Adly Mansour station to the New Capital.
The LRT has been developed in stages primarily through Chinese financing. The government inaugurated Phases 1 and 2 in July 2022, covering 68 kilometers at a cost of $1.2 billion funded by Chexim. The Chinese bank also provided a $400 million loan for Phase 3.
While the state continues to invest heavily in the network, it has struggled with passenger volume. The Ministry of Transport reduced ticket prices by 30% to 40% in September 2022 to combat "reluctance" to use the line before the full relocation of government employees to the New Capital.
Current ticket prices range between 10 and 20 pounds (about $0.19 to $0.38), with monthly subscriptions starting at 300 pounds (about $5.70).
The project is a cornerstone of Egypt’s massive infrastructure push. The Ministry of Transport allocated 1.054 trillion Egyptian pounds (about $20 billion) toward electric traction projects between 2014 and 2024.
