Minister of International Cooperation Signs €250 Mn Agreement with AIIB for Abu Qir Metro Project in Alexandria

Minister of International Cooperation Signs a Sharing Agreement with the Asian Infrastructure Investment Bank (AIIB) to Finance Abu Qir Metro in Alexandria with a Value of €250 Mn.

Dr. Rania Al-Mashat, Minister of International Cooperation, signed a sharing agreement with the Asian Infrastructure Investment Bank (AIIB) to finance the Abu Qir Metro project in Alexandria with a value of €250 mn.

This came during Dr. Rania Al-Mashat's visit to the Chinese capital, Beijing, to participate in the International Cooperation Forum for Joint Development, where several cooperation documents and memoranda of understanding were signed to enhance Egyptian-Chinese partnership and drive development efforts in the country.

This aims to enhance the implementation of the project, which aims to develop the Abu Qir railway line that connects central Alexandria with the Abu Qir area in the northeast of the governorate, transforming it into an electric metro system that contributes to reducing traffic congestion in Alexandria, supports the transition to environmentally friendly transportation, and reduces harmful emissions.

Total cost of the project is €1.5 bn, with joint financing from European Bank for Reconstruction and Development, European Investment Bank, the French Development Agency, and Asian Infrastructure Investment Bank.

Minister of International Cooperation also signed a memorandum of understanding with the Chinese Agency for International Development Cooperation regarding

Global Development Initiative launched by the Chinese President earlier, which enhances Egyptian-Chinese partnership.

It includes the establishment of a mechanism for consultation at the administrative level, as well as working on formulating an integrated strategy for development cooperation between Egypt and China for a period of 3-5 years for the first time in light of the common relations between the two countries, including the areas and projects that will be implemented through the development cooperation program.

In a related context, the Minister of International Cooperation also signed 4 cooperation documents with the Chinese Agency for International Development Cooperation, to provide Chinese grants for the supply of equipment to the Ministry of Transportation, the establishment of the Vocational Training Center in the Suez Canal Economic Zone, and the preparation of a feasibility study for the third-level Bio-Safety Laboratory for the Ministry of Health.

During her visit, Rania Al-Mashat reviewed with Luo Zhaohui, President of the Chinese Agency for International Development Cooperation, the most important stations of strategic partnership between Egypt and China, the portfolio of development cooperation between the 2 sides, and the need to enhance cooperation efforts to promote common development areas.

The President of the agency affirmed that Egypt is one of China's most important partners in Africa and the Middle East, and that their historical friendship relations date back to ancient civilizations, and they are currently witnessing significant development based on the priorities of the two countries and their joint efforts to achieve development.

Al-Mashat emphasized the importance of enhancing joint cooperation to expand Egyptian-Chinese relations to broader horizons, based on the continuation of historical relations, and starting from the strategic partnership agreement signed in 2014 during the visit of President Abdel Fattah El-Sisi to China, which raised the level of relations to comprehensive strategic relations.

Al-Mashat also pointed out that Egypt's developmental priorities align with the goals of the Chinese Belt and Road Initiative, and that it enhances South-South cooperation.

The President of the Asian Infrastructure Investment Bank emphasized the importance of the opening speech delivered by the Minister of International Cooperation at the session on mobilizing development financing, and both parties confirmed that there are more opportunities that can be worked on and built upon to enhance relations between the two sides.

The 2 parties agreed that Egyptian-Chinese cooperation is an exemplary model of South-South cooperation, as both sides are keen on exchanging experiences and transferring technology. One of the most prominent examples of this is the Assembly, Integration, and Testing Center for Satellites and EgyptSat-2 satellite for remote sensing applications, which is one of the most important projects being implemented from Chinese grants provided to Egypt.

The project represents a unique model for knowledge exchange and effective cooperation between the 2 countries, as well as confirming the Chinese side's commitment to supporting Egypt's priorities in enhancing scientific research in general and supporting the Egyptian space program in particular.

Al-Mashat held talks with Jin Liqun, president of AIIB, where they discussed the partnership between the 2 sides in implementing the Abu Qir Metro project in Alexandria as one of the most important projects that support the Egyptian government's efforts to promote environmentally friendly transportation and reduce carbon emissions.

The Minister of International Cooperation affirmed that the Arab Republic of Egypt values its relationship with the Asian Infrastructure Investment Bank as a strategic and developmental partner, and the importance of this relationship is reflected in the bank's selection of Egypt to host its annual meetings in September in  Sharm El-Sheikh, making it the first country in Africa to do so.

The President of the Asian Infrastructure Investment Bank emphasized that Egypt enjoys a distinguished position in terms of common relations, and that the bank is keen to expand the portfolio of development cooperation and engage in discussions on cooperation in implementing projects of the National Platform for Green Projects, especially the "Noufi" program, particularly projects related to the energy sector.

The 2 sides also discussed the need to enhance partnership with the Asian Infrastructure Investment Bank and the private sector in Egypt to enhance the developmental priorities of the state regarding expanding the private sector's participation in development.

The portfolio of development cooperation with China in Egypt amounts to about $1.7 bn, including $300 mn in the water management sector, $360 mn to support the budget, €250 mn to launch the Abu Qir Electric Metro, $210 mn to finance 11 companies in the private sector in the field of renewable energy, and a $150 mn credit line for the Egyptian Ahli Bank.

Al-Mashat met with Jingjing Wang, CEO of the Multilateral Cooperation Center for Development Finance (MCDF), which was established in 2020 to support developing countries and international financial corpoarates in facing sustainability challenges and enhancing infrastructure investments in different countries.

During the meeting, they affirmed their desire to promote joint cooperation, especially in providing grants for feasibility studies, capacity building, skills development, and training, in addition to exchanging experiences in light of South-South cooperation and tripartite cooperation.

The Minister also emphasized the government's keenness to further cooperate with MCDF, especially regarding technical support for implementing the projects of the National Platform for Green Projects, Noufi program, which is the link between water, food, and energy projects.

Minister Rania Al-Mashat presented Sharm El-Sheikh Guide for Just Finance, launched by Egypt during its presidency of COP27 Climate Conference in Sharm El-Sheikh, to enhance efforts for just finance. They discussed enhancing efforts to exchange experiences, knowledge, and experiments in the field of promoting just finance for developing countries and emerging economies.

It is worth mentioning that the portfolio of cooperation with China amounts to $ 1.7 bn for implementing various development projects in sectors such as electricity, health, education, vocational training, and others. Recently, Minister of International Cooperation witnessed the completion of the assembly and testing of EgyptSat-2 satellite in cooperation with the Chinese side at the Egyptian Space Agency headquarters.