Egypt is pursuing a €500 million ($590 million) loan from European financial institutions to finance the second phase of the Alexandria Metro project, as authorities accelerate efforts to modernise transport infrastructure in the coastal city.
According to a report by Asharq Business, the proposed funding forms part of Cairo’s broader strategy to ease congestion and upgrade urban mobility in Alexandria.
Once fully completed, the metro line is expected to stretch 43 kilometres, linking Abu Qir in the east to Borg El Arab in the west.
The trains will be capable of operating at speeds of up to 100 kilometres per hour.
Under the second-phase blueprint, the network will expand by 31 kilometres and add 22 passenger stations.
Don’t Miss This: IFC, ASR to Empower 1,000 Female Entrepreneurs Across Africa
Of this extension, 19 kilometres will be elevated while 12 kilometres will run at ground level.
Sources familiar with the project indicated that initial external financing requirements exceeded $1 billion.
However, Egyptian officials are now working to scale down foreign borrowing by strengthening domestic production capacity and limiting imports to specialised equipment that cannot be manufactured locally.
The localisation strategy has already drawn interest from major global rail manufacturers. Among them is Alstom, which is developing an industrial complex in Borg El Arab.
The facility is expected to produce electrical systems and rolling stock for metro, tram, monorail and high-speed rail projects, supporting Egypt’s ambition to build a stronger local rail manufacturing base.
Egypt’s Ministry of Transport recently released aerial footage showing progress on the project’s first phase.
That segment spans 21.7 kilometres, running from Abu Qir Railway Station to Misr Station and incorporating 20 stations, including both surface and elevated stops.
Officials view the Alexandria Metro as a cornerstone of efforts to relieve mounting traffic pressure while modernising one of Egypt’s most vital coastal corridors.
The planned European financing is expected to accelerate construction and help bring the second phase closer to completion.
