Orascom Construction PLC said its consortium with Colas Rail has signed an engineering, procurement and construction (EPC) contract with Egypt's National Authority for Tunnels (NAT) worth 1.30 billion euros ($1.39 billion) to build a new metro system in Alexandria.

In addition, French technology company Thales will provide the signaling, telecommunication and automatic fare collection packages for the project, Orascom said on its website on Thursday.

The total contract value for the project amounts to approximately EUR 1.3 billion. Funding for this project will be provided by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), L'Agence française de développement (AFD), and the Asian Infrastructure Investment Bank (AIIB).

The project, which spans 21.7 km and has 20 stations, will connect downtown Alexandria with the northeastern town of Abu Qir.

Orascom Construction, which is dual listed in the UAE and Egypt, has previously collaborated with Colas Rail and Thales on projects such as Greater Cairo Metro and future potential projects.

(Writing by Brinda Darasha; editing by Daniel Luiz)