The Export-Import Bank of China (Chexim) agreed to provide a new loan worth $400 million to the Egyptian government in order to finance the work of the third phase of the light rail train (LRT) project, Asharq Business cited unnamed sources familiar with the matter.

The light rail transit system is one of the projects that the government has worked to implement since 2014 to connect Cairo with the urban and industrial communities established in the eastern region. The opening of its first station was delayed until 2022, which was established after obtaining a loan worth $1.2 billion from Chexim itself in 2019.

One of the unnamed sources said that the administrative procedures for the loan will end before the end of this year, provided that the loan agreement will be presented to the cabinet at the beginning of the new year to approve the actual implementation of the disbursement.

Chinese funds were directed to purchase 22 trains, each consisting of 6 cars, in addition to installing all operating systems for the project, which opened its first and second phases in July 2022.

The sources also said that the new loan will be directed to pay the costs of electrical and mechanical systems, signals, communications, central control, and ticket gates, which will be implemented by the Chinese company AFIC, the main contractor for the project.