Signing of Yen Loan Agreement for Egypt: Contributing to the alleviation of traffic congestion and air pollution through the construction of a subway system

The Japan International Cooperation Agency (JICA) signed a Yen Loan Agreement (L/A) of up to 100 billion yen with the Government of the Arab Republic of Egypt for the “Cairo Metro Line IV Phase I (III)” in Cairo on April 30. The signing ceremony was held at the Presidential Palace in the presence of Prime Minister Fumio Kishida, who was visiting Egypt.

This project will construct a subway railway (approx. 19 km) in the southwest part of the Greater Cairo metropolitan area and downtown Cairo, following the Cairo Metro Line 4 Phase I Development Project that started in 2012 and the Cairo Metro Line 4 Phase I Development Project (II) that was signed in 2022. The project aims to meet traffic demand, reduce traffic congestion, and improve air pollution in the Greater Cairo metropolitan area, contributing to SDGs (Sustainable Development Goals) Goal 9 (Create a foundation for industrial and technological innovation), 11 (Create a livable city), and 13 (Take concrete measures against climate change).

The Japanese technology utilization condition (STEP) (see note) will be applied to the yen loan for this project, and Japanese systems and vehicles will be installed in the subway to be constructed under this project.

(Note) Abbreviation for Special Terms for Economic Partnership. Terms and conditions for the provision of yen loans established to promote Japan’s “face-to-face assistance” through the transfer of technology to developing countries utilizing Japan’s superior technology and know-how. The main contractor is Japan Tide and the subcontractor is General Untied. The main contractor must be either a Japanese company, a subsidiary of a Japanese company located overseas, or a joint venture (JV; the Japanese company is the lead partner) between a Japanese company and the borrowing country. Under certain conditions, a JV between a Japanese company and an equity-method affiliate of the Japanese company (with the Japanese company as the lead partner) can also be the lead contractor.

Details of the project are as follows

Amount and terms of loan

read more

© Source JICA