The African Development Bank (AfDB) has approved a €145m loan to finance key railway upgrade works in Egypt.

The funding will be used to improve operational safety and boost network capacity on national rail lines under the Egypt National Railways Modernization Project (ENRMP).

The ENRMP aims to install a train protection system on 950km of rail line along the busy routes that connect Alexandria in the north to Negh Hammadi in the south, and Port Said in the east.

AfDB North Africa deputy director-general Malinne Blomberg said: “The newly approved project will enhance the multimodal transportation environment in Egypt, and the efficient movement of people, services and goods.

“This operation is fully aligned with the bank’s strategy for interventions in Egypt, contributing to sustained and inclusive economic growth, and more specifically, developing infrastructure that supports the expansion of the private sector and job creation.”

The Egyptian Government has increased efforts to upgrade the national railway infrastructure.

Last month, the government allocated $14.36bn to accelerate development works as well as minimise the risks of train accidents.

Rail transport plays a key role in Egypt’s economy supporting 8% of passenger traffic and 6% of freight traffic movement.

The figures are expected to increase to 15% and 10%, respectively, by 2029.

Egyptian Minister of International Cooperation Dr Rania A Al-Mashat said: “Safe, accessible, convenient and green transport systems will be crucial to achieving sustainable development.”

Last month, World Bank also allocated a $440m loan for rail improvement works in Egypt.