The European Bank for Reconstruction and Development (EBRD) is considering a sovereign loan of up to EUR 150 million to the Arab Republic of Egypt, to be on-lent to Egyptian National Railways (ENR).
The loan will be used to finance the purchase of up to 50 new diesel locomotives under a Supply and Maintain contract outsourced to the private sector via competitive tendering. The total cost of the project is EUR 220 million.
This will support wider sector reform and the purchase of the new diesel locomotives will provide significant benefits to the service offer, in terms of fleet availability, operational efficiencies and reliability.
The operation will support ENR in its freight sector reform and commercialisation and will include the separation of freight operations and the introduction of track-access charges, which will provide a framework for future private sector involvement in the railway market.
The project aims for the reduction in carbon emissions by replacing 40-year old locomotives which will directly benefit ENR in reducing its energy consumption and achieving operating cost savings.
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