The National Authority for Tunnels (NAT), a subsidiary of Egypt's Ministry of Transportation, plans to borrow 13 billion Egyptian pounds (about $257 million) in the 2025–26 fiscal year to fund four major public transportation projects, a board member told Al Manassa.
The source, who requested anonymity, said the loans would be used to pay advance installments to companies contracted to execute these infrastructure projects, which form part of the government's broader mass transit modernization strategy.
A portion of the funds will go toward manufacturing 21 trains for the first phase of Alexandria's metro line, in collaboration with the state-owned National Egyptian Railway Industries Company (NERIC). The project is expected to bolster Egypt's push to localize transport manufacturing and reduce import dependency.
Further investment will flow into the revitalization of Alexandria's historic Raml Tram, through a joint venture between Arab Contractors Co. and Hassan Allam Holding.
The project includes the modernization of 24 stations along the tram route, as well as upgrades to electrical and mechanical systems, signaling, communications, centralized control, ticket gates, and infrastructure along a 13.2 km stretch.
The financing will also cover the overhaul of signal, communication, and central control systems for Cairo Metro Line 1, which links Helwan to New El-Marg. This phase will be executed by a consortium comprising Colas Rail, Orascom Construction, and Hitachi.
Additionally, the loan will fund a comprehensive renovation of the Tura depot, which serves Metro Line 1. Arab Contractors Co. will lead the work to modernize electromechanical systems, tracks, signals, and central control mechanisms.
The draft budget for 2025–26 has sparked heated debate in parliament, with some lawmakers warning of rising debt levels. In a press conference Monday, the transport and industry minister defended the borrowing strategy, saying loan terms were often favorable.
“Even your own brother wouldn’t lend you on these terms,” the minister said.
