Egyptian National Railways 10th Ramadan Railway Link- Project Update
Provision of a sovereign loan of up to EUR 40 million to the Arab Republic of Egypt, to be on-lent to Egyptian National Railways ("ENR"). The loan will be used to partially finance the supply and installation of the railway tracks, and signalling and telecommunication systems of Robeiky - 10th of Ramadan - Belbeis Railway Line ("the Project"). It is expected that the remaining part of the Project cost will be financed by another financial institution via a sovereign loan. The Government of Egypt ("GoE") will self-fund the Project's civil works.
The Project will connect the 10th Ramadan Dry Port PPP project ("DP 10") to ENR's main network, and in parallel allow freight traffic from/to a number of ports to bypass the Cairo railway node and save time. It is expected to serve containerised cargo through ENR's existing fleet. It will also serve commuting traffic between Robeiky, 10th Ramadan and Belbeis. As such, the Project will contribute to a modal shift of cargo and passenger transport from road to rail. The Project, therefore, represents a greener transport solution. It also represents an enabling infrastructure for the DP 10, which represents an integral part of the GoE's plan to develop intermodal transport systems and engage the private sector to accelerate the green transition.
EBRD Finance Summary
- EUR 40,000,000.00
- Total Project Cost
- EUR 220,000,000.00
Environmental and Social Summary
An initial Environmental and Social (E& S) examination confirmed categorisation B for the Robeiky-10th of Ramadan part and defined the scope of the Environmental and Social Due Diligence (ESDD). At this stage, it is proposed that the ESDD will be undertaken by independent consultants and will include a review of the current status of ENRs corporate E& S arrangements compared to the Banks 2019 ESP and their current capacity to implement the project in line with the PRs.
ENRs E& S performance will also be reviewed through Annual E& S Reporting previously submitted to the Bank. Other key E& S risks and impacts to consider will include labour and working conditions, contractor management, worker and public health and safety and operational rail safety. ESDD will include a specific focus towards community and worker health and safety exposed to rail operations to assess risks both during construction and operational phases and the mitigation measures that may be necessary. The Bank will also work with ENR on public health and safety awareness raising linked to railways and safe crossings. Based on the ESDD outcomes, an ESAP will be agreed with the client and the Project Summary Document will be updated before Board approval.
Technical Cooperation and Grant Financing
The project is expected to benefit from the following Technical Co-operation assignments:
Pre-signing TCs:
Development of a feasibility study to assess the viability of the Project, including assessment of the carbon footprint (GHG emissions), economic feasibility and Cost Benefit Analysis ("CBA"). In addition to technical review of all available designs and the corresponding budgets, and supporting the client in drafting the Project's technical specifications for the tender documents. ESDD, including development of the ESAP. An Environmental and Social Impact Assessment ("ESIA") if required, will potentially supplement the ESDD. Advance Procurement Support to assist the Client with the advance procurement of the Project assets in order to facilitate the timely and effective implementation of the Project.
Other potential post-signing TCs:
Project Implementation Support to facilitate the implementation process. Development of a public awareness campaign, targeting local communities including young people, children, and their families, to support ENR in preventing railway crossing accidents.
