Egypt to borrow $1.2b for metro

A Japanese development agency has agreed a $1.2 billion loan with the Egyptian government to fund Cairo's fourth metro line. The Japan International Cooperation Agency (JICA), an independent governmental agency, inked the deal at Egypt's Cabinet office in downtown Cairo on Monday, according to an official statement. The first tranche of the loan is worth $392 million, according to a report in the state-run Al-Ahram newspaper. The loan is being granted with a 40-year repayment term, including a 10-year grace period, and an annual interest rate of 0.2 per cent. Cairo's planned fourth underground railway line will connect central Cairo with Giza, spanning 17 kilometres and comprising 16 stations. It forms part of a wide-reaching plan to reduce traffic congestion in the capital. The line, scheduled for completion in 2020, is expected to see 1.3 million daily users in its first year, rising to 1.8 million in 2027.