Egypt signed on Wednesday an initial agreement today with Chinese holding company Aviation Industry Corporation of China (AVIC) to construct first electric traction railway system in Egypt. The project will be with investments worth US$1.5 billion. The agreement with AVIC INTL was signed with the Egyptian Minister of Transportation Hany Dahy who is currently visiting China among an Egyptian ministerial delegation. Electric traction refers to the use of electricity as an energy source instead of the traditional fuel sources. The new two-way railway will connect cities of El-Salam, Obour, New Heliopolis, Shorouk, 10th of Ramadan and the country's new capital. From his part, Minister Hany Dahy said the agreement comes to prepare for President Abdel Fattah al-Sisi's visit to China on December 23. As pursuant to Egypt- AVIC agreement, the Egyptian minister said the project will be fully financed by the Chinese side through facilitated funding conditions and repayment period of 20 years. Dahy further clarified that the electric traction project would help reduce traffic disruptions in Cairo.
