Egypt's National Authority for Tunnels is seeking a concessional loan of up to $240 million from the Export-Import Bank of China (Chexim) to finance electromechanical and systems work for the fourth phase of the Light Rail Transit (LRT) network, an authority board member told Al Manassa.
The targeted borrowing covers nearly half the projected $515 million total cost of Phase 4, coinciding with Chinese President Xi Jinping’s state visit to Cairo at the invitation of President Abdel Fattah El-Sisi to commemorate the 70th anniversary of diplomatic ties between the two nations.
Under the financing arrangement, a consortium comprising Chinese state contractors AVIC International and MBEC will carry out electromechanical systems, signaling, control mechanisms, and power infrastructure funded through the Chexim facility, said the board member, who spoke on the condition of anonymity.
Domestic contracting firms will handle the remaining civil works, backed by local bank loans currently under negotiation.
The authority plans to initiate formal loan procedures immediately after signing final commercial contracts with both Chinese companies. Phase 4 spans 16 kilometers with a design capacity to move approximately 1 million riders per day, creating a direct link between Egypt’s New Administrative Capital and the industrial hub of 10th of Ramadan City.
The transaction deepens Beijing’s financial imprint on Egyptian transit infrastructure. In July 2022, the government inaugurated the initial two phases of the LRT—spanning 68 kilometers—backed by an initial $1.2 billion Chexim facility. The Chinese policy lender subsequently contributed a second loan worth $400 million to finance the line's third phase.
Beyond Phase 4, the government aims to secure a separate agreement with Beijing to fund technical and financial feasibility studies for a prospective fifth phase, whose construction cost officials estimate at $150 million to $170 million.
According to planning documents published on the National Authority for Tunnels’ portal, Phase 5 would extend the track 7.8 kilometers with a single station, running from the New Administrative Capital’s Central Interchange Station to the capital’s dedicated industrial zone.
Commuters currently pay between 10 and 20 Egyptian pounds ($0.21–$0.41) per ride depending on trip length, while monthly transit passes begin at 300 pounds.
The push to finalize the LRT network fits into a broader multi-year modernization program by the Ministry of Transport, which directed roughly 1.054 trillion pounds toward electric traction infrastructure between 2014 and 2024.
