National Tunnel Authority seeks EGP 29B loan from 9 local banks, source says
The Transport Ministry’s National Tunnel Authority (NTA) is preparing to secure a 29 billion Egyptian pound ($542 million) loan from a consortium of nine local banks to finance domestic contractors working on the first line of the high-speed electric rail network and the third phase of the New Administrative Capital’s light rail transit (LRT) system, an NTA board member told Al Manassa.
The NTA is Egypt’s biggest borrower among public-sector economic authorities. The state budget for the current fiscal year projected that the authority would take on domestic and foreign loans exceeding 275 billion pounds (about $5.14 billion) to fund its capital investment projects.
Speaking on condition of anonymity, the source said the authority has secured commitments from banks operating in the local market, including seven private lenders and two state-owned institutions. The financing carries a repayment term of more than 20 years, with interest tied to the Central Bank of Egypt’s corridor rate.
The corridor represents the spread between the central bank’s overnight deposit and lending rates, which currently stand at 19.0% and 20.0% respectively.
The loan will be backed by a Ministry of Finance guarantee, the source explained to Al Manassa. The ministry will also assume responsibility for repaying the loan principal, leaving the NTA responsible for servicing accrued interest.
The prospective financing coincides with ongoing work on the first line of the high-speed electric rail network, which spans 675 kilometers from Ain Sokhna through New Alamein City to Marsa Matrouh.
Passenger-free trial runs on the line are scheduled to begin this month and continue for six months, according to previous statements by Minister of Industry and Transport Kamel Al-Wazir.
Alongside the high-speed network, the NTA is preparing to launch trial operations for the LRT’s third phase in the coming days. The 20.4-kilometer extension features four stations: the Nativity of Christ Cathedral, Strategic Command, International Olympic City, and Central Capital. The phase is being built by a consortium grouping China’s AVIC, Arab Contractors and Orascom.
In July 2022, the government inaugurated the LRT’s first two phases, covering an aggregate length of 68 kilometers at a funding cost of roughly $1.2 billion through an Export-Import Bank of China (EximBank) loan. The Chinese lender subsequently contributed to financing the third phase with a separate $400 million loan.
Single-trip fares currently range between 10 and 20 pounds ($0.19 to $0.38) based on the number of stations, with monthly commuter passes starting at 300 pounds (roughly $5.60).
Completing the LRT forms part of the Transport Ministry’s broader push into electric traction in recent years, with the ministry allocating some 1.054 trillion pounds ($19.6 billion) to electric transit initiatives between 2014 and 2024.