The Russian-Hungary consortium has met the requirements of Egypt for the delivery of 700 coaches for the transport of passengers, Russia’s Ministry of Industry and Trade announced.
The trilateral agreement, signed by Russia, Hungary and Egypt, stipulating the delivery of the 700 coaches to Egyptian Railways, was discussed on 21 August by Denis Manturov, Russia’s Minister of Industry and Trade and Sameh Shukri, Egypt’s Minister of Foreign Affairs.
“The Russian-Hungarian consortium has solved problems related to the attraction of funds necessary for export, through Hungarian EximBank, with the warranty that Hungary’s Export Credit Agency (MEHIB) and the Russian Agency for Export Credits and Investment Insurance (EXIAR) will provide favourable conditions for Egypt. Thus, the Russian-Hungarian consortium met the basic requirements drafted by Egypt’s authorities concerning technical specifications, the price of coaches and financing terms”, shows a declaration of Russia’s Ministry of Industry and Trade.
Under the agreement, in the first phase, the consortium will deliver to Egyptian Railways the passenger coaches manufactured by Transmashholding, the Russian rolling stock manufacturer. The contract is worth over EUR 500 million.
Sergo Kurbanov, Vice President of Transmashholding, said the demand of Egyptian Railways stipulates the future delivery of 1,500 passenger coaches including class wagons and restaurant coaches, as well as locomotives.
Overall, the transaction amounts to over EUR 900 million and stipulates, apart from the delivery of coaches, the donation of 80 more coaches, staff training and a technical support program. The transaction will be ensured by EximBank (Hungarian Export-Import Bank). The loan interest rate will be of 1.26% with financing reimbursement on a period of 12 years and a grace period of 5 years.
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