Egypt's NAT to borrow $177mln for Alexandria tram project

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Egypt's National Authority for Tunnels (NAT) is planning to secure a loan worth EGP 9 billion from a consortium of local banks led by the National Bank of Egypt (NBE), two unnamed sources in the know told Asharq Business.

The loan will be used to finance civil works in local currency for the rehabilitation and development of the Raml Tram in Alexandria, the sources added.

Procedures for the local financing are expected to conclude by mid-2025, with disbursement beginning in the third quarter (Q3) of the year, one of the sources noted.

The Alexandria tram, spanning 13.2 kilometers, relies on two external financing the French Development Agency (AFD) and the European Investment Bank (EIB), valued at a total of €238 million.

The project, with an estimated total cost of €363 million, is being executed by a local consortium comprising Arab Contractors and Hassan Allam.