An Egyptian-Chinese consortium is set to begin the implementation of the third phase of the Light Rail Transit (LRT) project, valued at $550 million, according to three government officials who spoke to Asharq on the condition of anonymity.

A government official stated that the project for the new phase has been awarded to a consortium comprising China’s AVIC International Holding Corporation and Egypt’s Arab Contractors and Orascom Construction. The completion of this phase is targeted within two years.

The third phase of the LRT project will extend 20.4 kilometers and will include four stations.

Another official explained to Asharq that the funding for the project will be secured through two loans: an external loan of approximately $400 million from the Export-Import Bank of China (Chexim), which also financed the first and second phases of the LRT, and a local currency loan from Egyptian banks.

The LRT is one of the projects the government has been working on since 2014 to connect central Cairo with new urban and industrial communities in the eastern regions of the capital.

However, the opening of its first stations was delayed until July 2022, following a $1.2 billion loan from Chexim.

The new Chinese bank loan will be allocated to cover the costs of electrical and mechanical systems, signals, communications, central control, and ticket gates, which will be implemented by the Chinese company AVIC as the lead of the consortium.

Meanwhile, the local loan will be used for the construction of the stations and the track for this phase.