Exchange of Notes concerning Yen Loan for the Arab Republic of Egypt “Greater Cairo Metro Line No. 4 Phase 1 Project (III)” (Summary)
On April 30 (same day local time) in Cairo, capital of the Arab Republic of Egypt, notes were exchanged for a yen loan up to 100 billion yen between Mr. OKA Hiroshi, Ambassador Extraordinary and Plenipotentiary of Japan to the Arab Republic of Egypt, and H.E. Dr. Rania Al-Mashat, Minister of International Cooperation of the Arab Republic of Egypt, in the presence of Mr. KISHIDA Fumio, Prime Minister of Japan, and H. E. Mr. Abdel-Fattah El-Sisi, President of the Arab Republic of Egypt.
1. Overview of the target project
(1) Egypt faces chronic traffic congestion caused by the increase in population and automobile use, prompting concerns about further escalation of traffic congestion as a result of future urbanization of the country. The Egyptian Government has been promoting the decentralization of population in existing urban areas by constructing satellite cities equipped with such functions as industrial and residential areas in the suburbs of the Cairo metropolitan area. Traffic congestion caused by the expansion of urban areas is beginning to impact on transportation between these cities, making it urgent to improve the public transportation network.
(2) This project aims to respond to the increasing traffic demand and alleviate the worsening traffic congestion by constructing a subway system in the southwestern part of the Cairo metropolitan area, thereby contributing to the economic development of the Arab Republic of Egypt.
(3) Loan terms
(a) Interest rate: 0.10% per annum (0.01% per annum for the consulting service portion)
(b) Repayment period: 40 years (including a 10-year grace period)
(c) Procurement terms: Tied between two countries (civil engineering work), tied (train car depots, train car maintenance facilities, signaling systems, track laying signaling systems, train cars, etc.)
2. In the "Japan-Egypt Joint Statement" issued during the official visit to Japan by Egyptian President El-Sisi in February 2016, the leaders of the two countries confirmed that they "would consider a possibility of future cooperation for the development of public transport network in Egypt, by benefiting from Japanese technology, including Cairo Metro Lines, based on a wide range of cooperation in the transport sector" and this cooperation will materialize the statement.
The Arab Republic of Egypt has an area of approximately one million square kilometers (roughly 2.6 times the area of Japan), a population of approximately 102 million (World Bank, 2020), and a per capita gross national income (GNI) of 3,000 US dollars (World Bank, 2020).
