CHINESE EXIM BANK TO OFFER EGYPT US$3bn FOR ITS DEVELOPMENT
Chinese Exim Bank offer US$3bn to Egypt for its infrastructure development.
Chinese Exim Bank is offering Egypt US$3bn for their new projects over the next couple of years. This will help grow Exim Bank brand in the nation as well as investing for the future.
The fund will include a facilitated loan of US$1.2bn for the implementation of Egypt’s first electric train. With over US$1bn for the Hamrawein coal plant and the rest for several projects especially the New Administrative Capital.
According to China’s Economic Counsellor at the Chinese Embassy, Hang Bing, “Chinese Exim Bank is very active in the Egyptian market. He also said they are negotiating on other large projects in the petrochemical sector.”
Mr Bing also defended China’s part sponsoring of Electric train in Egypt, as the project divided into two parts. The first part will be done by the Egyptians while the second project will be carried-out by Chinese companies.
He further stated that the Chinese Government will take responsibility of the second part while Egypt will cover for the implementation and cost of the first part.
On 25th January, Fitch solution released a statement about the Electric train project. According to their report, as Egypt is rapidly growing population, the development of new urban area will drive demand for investment in public transport.
In the report, the project will face numerous obstacles including the questionable feasibility, high cost and complexity, which will make lengthy delays likely.
Chinese companies is also seeking new deals with Egyptians partners in the renewable energy sector according to Bing.