Alstom has secured competitive, long-term financing covering 100 percent of the contract price for the Cairo Metro Line 1 (CML1) project, the company’s Managing Director for Egypt said.
In November 2021, the French transport giant was awarded a €876 million ($919 million) contract by National Authority for Tunnels (NAT) for the supply of 55 Metropolis trains and an 8-year maintenance contract for the upgrade of CML1.
Ramy Salah El Din told Zawya Projects that a government-to-government financing protocol for the project was signed [In June 2021] by Bruno Le Maire, French Minister of the Economy, Finance and Recovery and Kamel El-Wazir, Egyptian Minister of Transport.
“Thanks to the strong support of French authorities, Alstom has been able to coordinate competitive, long-term financing covering 100 percent of the contract price. For CML1 [we achieved] low fixed interest rate, 40 years maturity including a 15-year grace period,” he said, adding that discussions are underway for financing CML6 [Cairo Metro Line 6].
Andrew Deleone, President of Alstom Africa, Middle East and Central Asia, and Essam Wally, Chairman of NAT had signed a Memorandum of Understanding (MOU) to work together on the new metro line.
“These agreements are a reflection of Alstom’s deep commitment to partnering with the Ministry of Transport and the NAT to develop modern rail infrastructure and provide new innovative mobility solutions for Egypt,” Salah said.
He added that green financing is involved “but details around it are still in the discussions phase.”
The Alstom executive said the company is considering an ambitious localisation plan for railway systems and rolling stock, noting that local execution of project activities would create direct and indirect jobs in Egypt and bring technology transfer.
“Maintenance work [for CM1] would be carried out at the depot in Cairo and managed locally, creating long term job opportunities for local talents. A training and development plan will be rolled out in partnership with the Egyptian Company for Metros (ECM) – the operator and maintainer of Line 1,” he disclosed.
He said Alstom’s Metropolis trains for CML1 will have 9 cars per train, feature wide corridors, and a dedicated women’s area, and each train will have a peak capacity of 2,580 passengers.
“Alstom’s proposal includes a unique design to reflect the history and culture of Cairo,” he said.
With financing sealed for Line 1, other important details are being finalised, according to the Alstom executive.
“The delivery planning [for Line 1] is still in discussion,” he disclosed, adding that for Line 6, discussions are underway for financing, local manufacturing and job creation.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)