SUEUN Provides $300 Million Blended Finance Support for Egypt Railway Modernization Project

Support Including $251 Million from the Economic Development Cooperation Fund

[Asia Economy Reporter Kim Jin-ho] The Export-Import Bank of Korea (KEXIM) announced on the 22nd that it will provide approximately $312.25 million in support for the modernization project of the railway section between Luxor and High Dam (224 km) in southern Egypt, together with the Economic Development Cooperation Fund (EDCF).

This support for Egypt's railway modernization project by KEXIM is the first case of blended finance jointly provided by the Economic Development Cooperation Fund (EDCF) and KEXIM funds (EDPF). Of the total support amounting to $312.25 million, $60.64 million from KEXIM funds (EDPF) will be invested in the infrastructure sector, and $251.61 million from EDCF will be allocated to the modernization of signaling and communication systems.

Since EDCF and KEXIM funds (EDPF) are jointly supporting the project, it is expected that the infrastructure and systems will be improved in an integrated manner, maximizing the support effect by expanding opportunities for Korean companies to participate in overseas projects.

The Egyptian railway modernization project is a top national priority project of the Egyptian government, being promoted in three phases since 2009. The section supported by KEXIM is the last 224 km segment located at the southernmost part of the entire 962 km route, and the completion of this section will mark the completion of the entire route's modernization.

This project section is densely packed with major Egyptian tourist attractions such as the Luxor Temple and the Valley of the Kings, resulting in high tourist traffic, and it also plays a significant role in the logistics movement of various agricultural products produced in the lower Nile River region.

A KEXIM official stated, “As of last year, Egypt is Korea’s number one export destination in Africa. Considering its economic scale, population, and geopolitical location, the need to strengthen economic cooperation is very high.” He added, “We will expand large-scale infrastructure support using blended finance to enhance friendly relations with developing countries and increase opportunities for Korean companies to enter overseas markets.”