On May 10, 2016, Egypt’s Ministry for International Cooperation and the European Bank for Reconstruction and Development (EBRD) signed two agreements valued at $250 million to finance investments in Egypt’s transport and water sectors. The signing took place at EBRD’s headquarters in London, UK.

Under the first memorandum of understanding, EBRD will provide $250 million, in two tranches, for the rehabilitation of the Heliopolis tramway line connecting Ramsis to Almaza in Cairo. Project cost was estimated at $500 million. The first tranche, $125 million, which will be provided as sovereign loans, will help fund new infrastructure projects developed by the National Tunnel Authority. The second tranche, also $125 million, will most likely be awarded to a private company which will provide vehicles and proceed to fleet maintenance.

Regarding the second memorandum of understanding, it is the bank’s first formal commitment in the development of a water irrigation system. However, no amount was mentioned. EBRD intends to take part in a program developed by Egypt’s Ministry for Water Resources and Irrigation to modernize irrigation system and boost services’ efficiency and quality.

EBRD’s financing should help improve climate resilience and efficient use of water and power in the agro-industrial sector which consumes more than 86% of Egypt’s water resources.

In addition, technical support will be provided to prepare and carry out the projects.

Since it started its activities in Egypt at the end of 2012, EBRD invested more than €1.7 billion ($1.9 billion) in the country, through 34 projects. Sectors in which the bank invests include finance, agro-food, manufacturing and services, as well as infrastructure projects.