Signing of Japanese ODA Loan Agreement with Egypt Support for the alleviation of traffic congestion and air pollution through the construction of a new metro

［Goal 9］ Industry, Innovation and Infrastructure
SDGs
［Goal 11］ Sustainable Cities and Communities
SDGs
［Goal 13］ Climate Action
SDGs

2023.05.16

On April 30, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Arab Republic of Egypt in Cairo to provide a Japanese ODA loan of up to 100,000 million yen for the Greater Cairo Metro Line No. 4 Phase 1 Project (III). The signing ceremony was held at the presidential palace and was attended by Prime Minister Kishida Fumio, who was visiting the country at the time.

As a continuation of the first and second tranche of Greater Cairo Metro Line No. 4 Phase 1 Project, signed in 2012 and 2022 respectively, the objective of this third tranche is to meet transportation demand, mitigate traffic congestion, and improve air pollution in the Greater Cairo area. It will do so by constructing a new metro (approximately 19 km in length) in the southwest of Greater Cairo and in the city center of Cairo. This project will contribute to the achievement of SDGs (Sustainable Development Goals) Goals 9 (Industry, innovation and infrastructure), 11 (Sustainable cities and communities), and 13 (Climate action).

The Special Terms for Economic Partnership (STEP)* scheme apply to the Japanese ODA loan for this project, and Japanese systems and trains will be installed at the metro being constructed under the project.

  • *STEP refers to special assistance terms for promoting the visibility of Japanese aid through a transfer of outstanding Japanese technology and expertise to developing nations. The main contract is Japan tied and subcontracting is general untied. The main agreement partner must generally be a Japanese company, an overseas subsidiary of a Japanese company, or a joint venture between a Japanese company and the borrowing country where the Japanese company is the lead partner, although under certain conditions a joint venture between a Japanese company (which is the lead partner of the joint venture) and an affiliated company (as accounted under the equity method) of a Japanese company may be the main agreement partner.

Loan agreements exchange ceremony (Source: Official Website of the Prime Minister of Japan and His Cabinet)

Loan agreements exchange ceremony (Source: Official Website of the Prime Minister of Japan and His Cabinet)

Details for the project are provided below.

1. Terms and Amount of Loan

Project title Amount
(million yen)		 Annual interest rate (%) Repayment
period
(years)		 Grace
period
(years)		 Procurement
Project Consulting services
Greater Cairo Metro Line No. 4 Phase 1 Project (III) 100,000 0.1 0.01 40 10 Japan tied

2. Executing Agency

National Authority For Tunnels
Address: Ramses Square, Ramses Building, P.O. Box 466
Phone: +20(2)25742968, FAX:+20(2) 25742950

3. Planned Implementation Schedule

  • 1 . Completion of project: February 2028—when the metro is put into service
  • 2 . Issuing of letters of invitation for consulting services (including detailed design work): already employed
  • 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: already contracted

4. JICA Contact Information

For further information about the procurement schedule, please contact the party listed below.
Contact Point for Transport Sector, JICA Egypt Office
Address: World Trade Center 6th Floor, 1191 Corniche El Nile St. Boulak, Cairo, Egypt
Phone: +20 (2) 2574-8240/41/42/44 , +20 (2) 2773-6090/91, FAX:+20 (2) 2574-8243, +20(2)2773-6095

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