Transport has been at the centre of the European Investment Bank’s work in Egypt since its first operation there in 1979. Back then, the government of the Arab Republic of Egypt and the EU bank signed three financing agreements to support maritime transport, energy generation and investments by small and medium enterprises.
The first loan was to another world-famous Egyptian landmark, the Suez Canal. It supported a major expansion of the canal to allow tankers drawing 53 feet to transit the waterway. The project included dredging to deepen and widen the canal, civil engineering and maritime works, such as the removal of wrecks near the canal at Port Said and Suez.
This important debut project is paralleled by major financing over the last decade for Egyptian transport, including:
Why transport? It’s crucial for economic growth. Greater Cairo is one of the world’s mega-cities with a population of more than 20 million, where demand for mobility has greatly outpaced the capacity of public transport. Cairo Metro, the backbone of the city’s transport system, has helped to meet the demand—and reduced energy consumption and greenhouse gas emissions.
EIB Egyptian development in energy
Energy is also a story of the continuity of European Investment Bank lending to Egypt.
The bank’s second loan in 1979 backed the Egyptian Electricity Authority’s construction of the first phase of a 900 MW thermal power station at Shoubra El Kheima, the fourth-largest city in Egypt.
The European Investment Bank also supported its connection with the national network and the next phase of the project in 1984-1986.
Shoubra El Kheima was the first of 37 large energy-related projects financed by the European Investment Bank in Egypt, including: