Ahmed Kamel – Egypt Daily News
Egypt is in advanced discussions with European financial institutions to secure a €500 million ($590 million) loan to finance the second phase of the Alexandria Metro, a flagship infrastructure project aimed at transforming transport in the country’s second-largest city.
The funding would support a major extension of the metro system in Alexandria, adding 31 kilometers of track and 22 stations to the coastal rail corridor. The project forms part of Cairo’s broader strategy to modernize urban transport networks, ease chronic congestion, and stimulate industrial localization in large-scale infrastructure ventures.
The full metro line is designed to stretch 43 kilometers from Abu Qir in the east to Borg El Arab in the west, linking densely populated neighborhoods with industrial and residential zones. Trains are expected to operate at speeds of up to 100 kilometers per hour, significantly reducing travel times across the Mediterranean city.
A Phased Expansion
The second phase under consideration will include 19 kilometers of elevated track and 12 kilometers at ground level, integrating new passenger stations into existing urban districts. It follows ongoing work on the first phase, which spans 21.7 kilometers from Abu Qir Railway Station to Misr Station and includes 20 stations, both surface-level and elevated.
Egypt’s Ministry of Transport recently released aerial footage highlighting progress on the initial segment, which officials describe as a critical step in converting the aging Abu Qir suburban railway into a high-capacity metro system.
Reducing Foreign Financing Through Localization
While early estimates suggested the second phase could require more than $1 billion in external financing, government officials are now seeking to reduce reliance on foreign borrowing by expanding domestic manufacturing partnerships and limiting imports to specialized components unavailable locally.
According to sources cited by Asharq Business, Egypt has intensified efforts to localize rail-related industries, attracting approximately six international rail companies to participate in domestic production.
Among them is Alstom, which is establishing an industrial complex in Borg El Arab. The facility is expected to produce electrical systems and rolling stock for metro, tram, monorail, and high-speed rail projects, positioning Egypt as a regional manufacturing hub for rail transport technologies.
Officials argue that such partnerships will not only lower project costs but also create jobs, transfer technology, and strengthen Egypt’s long-term infrastructure independence.
Strategic Urban Infrastructure
The Alexandria Metro is central to easing mounting traffic congestion in a city that serves as both a major port and a densely populated urban center. With rising car ownership and limited road expansion capacity, authorities see mass transit upgrades as essential to sustaining economic growth along Egypt’s northern coast.
The project aligns with broader national transport reforms, including upgrades to Cairo’s metro network, expansion of electric rail lines, and development of high-speed rail corridors linking major cities.
European lenders have played a key role in financing previous Egyptian infrastructure projects, particularly in transport and renewable energy, often combining loans with technical assistance and environmental oversight.
If secured, the €500 million loan would represent another significant step in Egypt’s efforts to modernize its public transportation systems while balancing fiscal pressures through industrial localization and diversified financing sources.
As construction advances on the first phase and negotiations continue for the second, the Alexandria Metro stands as a test case for Cairo’s dual-track strategy: expanding critical infrastructure while reshaping its industrial base to reduce dependence on imports and external borrowing.
