Egypt is pursuing a €500 million (approximately US$590 million) loan from European financial institutions to finance the second phase of the Alexandria Metro project, as part of broader efforts to modernise urban transport infrastructure and ease congestion in the coastal city.
The proposed funding, reported by Asharq Business, forms a key component of Cairo’s infrastructure strategy aimed at strengthening mass transit systems in major urban centres. The Alexandria Metro, once fully completed, is designed to span 43 kilometres, linking Abu Qir in the east to Borg El Arab in the west with trains capable of speeds of up to 100 kilometres per hour.
Under current plans, the second phase will extend 31 kilometres and include 22 passenger stations. Of that stretch, 19 kilometres will be elevated while 12 kilometres will run at ground level. The expansion is expected to significantly increase passenger capacity and reduce traffic congestion along one of the country’s busiest corridors.
Initial external financing requirements reportedly exceeded US$1 billion. However, Egyptian authorities are now working to reduce foreign borrowing by expanding local manufacturing partnerships and limiting imports to specialised components not available domestically. This localisation strategy is intended to cut costs, support domestic industry, and reduce foreign currency pressures.
The push has already attracted several international rail companies. Among them is Alstom, which is developing an industrial complex in Borg El Arab. The facility is expected to manufacture electrical systems and rolling stock for metro, tram, monorail, and high-speed rail projects, strengthening Egypt’s rail production capacity.
The first phase of the Alexandria Metro project covers 21.7 kilometres from Abu Qir Railway Station to Misr Station and includes 20 stations, combining surface and elevated segments. Egypt’s Ministry of Transport recently released aerial footage showing construction progress on that section.
Officials describe the metro as central to alleviating traffic congestion, reducing travel times, and modernising transport infrastructure in Alexandria, one of Egypt’s most densely populated and economically significant cities. Beyond mobility improvements, the project is expected to stimulate job creation, enhance environmental sustainability, and support long-term urban planning objectives.
The planned European loan reflects Egypt’s continued reliance on blended financing models that combine international funding with domestic industrial development. If secured, the funding would accelerate progress on the second phase while aligning with the government’s broader infrastructure modernisation agenda.
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