CAIRO, May 13 (KUNA) -- Egypt and Kuwait signed a memo of understanding here Sunday, whereby Kuwait Fund for Arab Economic Development (KFAED) will give Egypt KD 600,000 (roughly USD 2.1 million).

Under the deal, the sum is to be used in bankrolling a feasibility study for two railway projects.

Minister of Planning and International Cooperation Fayza Abul Naga said in news remarks that the aid would be used in funding consultative services for two railway projects.

She said her ministry is willing to develop a cooperative strategy with the KFAED, which has been a key and effective partner to Egypt between 2008 and 2014.

It includes the financing of several power, natural gas and railway projects in Egypt, she added.

The KFAED has extended a total of 34 loans worth KD 553.8 million (USD two billion) to Egypt during the period from 1964 to 2012, the minister added.

The KFAED's aid and loans to Egypt are mainly used in the funding of development projects in the country, she pointed out.