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World Bank approves Egypt $400 mln to improve and decarbonize logistics and transportation sectors

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03/10/2022
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World Bank approves Egypt $400 mln to improve and decarbonize logistics and transportation sectors

The World Bank has agreed to provide Egypt with $400 million to develop the logistics and transportation sectors and support the shift towards lower carbon emissions, the group said in a statement on Monday.

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The project will focus on developing a railway bypass in Egypt’s congested Alexandria-the 6th of October-Great Cairo Area railway corridor, allowing for increased freight capacity and decongesting areas with high demand for passenger trains, the World Bank added.

Egypt’s transportation sector is the second largest contributor to greenhouse gas emissions in the country, at around 19 percent, according to the World Bank. The international body estimates that the railway project will reduce emissions by 965,000 tonnes over 30 years.

The World Bank also said that it supports the Egyptian government’s effort to promote private sector participation in improving its railways by creating a system similar to road tolls, permitting privately-owned trains to operate on national tracks for a fee.

The ongoing development finance portfolio between Egypt and the World Bank includes 15 projects worth $5.7 billion, Egypt’s ministry of international cooperation said on Monday, and includes initiatives in healthcare, social security, enterpreneurship, in addition to transportation.

World Bank approves Egypt $400 mln to improve and decarbonize logistics and transportation sectors

Source: Reuters
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