A consortium of Egyptian construction companies has secured guarantees for a $US 3bn loan from several Chinese banks to finance construction of a 250km high-speed line from Port Said to Abu Qir.
According to Egypt Independent, the DDC Alliance, which includes the El Didi Group, Gama Construction and Concord, has secured initial approval for the loan after submitting technical and financial studies for the project, the fourth phase of Egypt’s ambitious high-speed construction programme.
Following the completion of further financial and economic studies, a timetable for project delivery is expected to be completed by the end of this year.
The alliance is also reported to be in negotiations with the Ministry of Transport to acquire sites totalling 60,704ha along the route of the new line, running along the Mediterranean coast via West Port Said, Damietta and New Abu Qir and serving 14 stations.
The proceeds of developing these sites would be used to help meet loan repayments, with the alliance aiming to recoup construction costs within 10 years through income from station retail facilities and other projects.
Expected to take four years to complete, the new high-speed line is being developed under a memorandum of understanding (MoU) signed by the DDC Alliance and the Ministry of Transport.
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