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  • Tuesday, 13 June 2023

The Ministry of International Cooperation and the Korean Embassy Signe a Development Financing Agreement Worth $460 Million to Supply 40 Train Units for the 2nd and 3rd Lines of the Greater Cairo Metro in Line With Partnership between Egypt and South Korea

● Al-Mashat: The new project enhances the Government of Egypt’s  efforts to localize the industry and reflects promising prospects for partnerships with South Korea.

● The new Korean ambassador in Cairo: Egypt has great opportunities for growth, and the Korean government is keen to support partnerships that benefit the citizens.

In line with the cooperation and strategic partnership between the two countries, and after South Korea chose Egypt to become the strategic partner in the field of development cooperation for the next five years, a development financing agreement worth $460 million for the implementation of the manufacturing and supplying 40 train units (320 wagons) for the 2nd and 3rd lines of the Greater Cairo Metro project, through the concessional financing window provided through the Korean Cooperation Fund for Economic Development of the Export-Import Bank of Korea.

During the signing activities, the Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat welcomed the new South Korean ambassador to Cairo H.E. Kim Yong-hyon, applauding the efforts exerted by the Egyptian and Korean sides during the past year to implement this project, which aims to localize the railway industry and electric traction units in Egypt, through joint cooperation between the  National Egyptian Railway Industries Company (NERIC) and Hyundai Rotem in the Suez Canal Economic Zone.

Al-Mashat noted that the new project comes in light of the Government of Egypt’s  efforts to localize the railway industry in Egypt, to meet development requirements and enhance the ability to export to Africa by establishing a global manufacturing center for heavy and strategic industries. This is to be done through the effective participation of the private sector and learning from Korean expertise in the area of localization of technology and attracting foreign investments, which contributes to the creation of approximately 5,000 job opportunities in the Suez Canal Economic Zone, in order to achieve social and economic progress in the region.

H.E. indicated the government's appreciation for the ongoing cooperation with South Korea and its aspiration for more joint work in light of the directives of President AbdelFattah El-Sisi, and the transition of joint relations to broader horizons in light of the strategic partnership between the two countries in the field of development cooperation for the next five years to meet the requirements of development and promote the transformation to a green economy and the expansion of sustainable infrastructure projects.

Al-Mashat pointed out the importance of formulating a framework for cooperation and a joint strategy for the next five years, reflecting development priorities and the strength of Egyptian-Korean relations, and benefiting from Egypt's accumulated experiences and successful partnerships with multilateral and bilateral development partners, in order to achieve integration in development cooperation efforts, and maximize the return from them.

For his part, the Korean Ambassador in Cairo thanked the Minister of International Cooperation for the efforts to support joint relations, noting that the coming period will witness more cooperation in light of the strategic partnership between the two countries. He also stressed the fact that the Korean government is keen to make efforts to promote development that benefits both countries.

With regard to the project, the Korean ambassador explained that the project contributes to strengthening Egypt's efforts to develop means of transportation and provide advanced means of transportation for citizens, stressing the great capabilities that the Egyptian state possesses in its large number of youth, which enables it to achieve significant growth through comprehensive partnerships.

The Managing Director of the Egyptian National Company for Railway Industry Eng. Ahmed Fekry said that the project does not only represent a mere supply of equipment, but also aims to localize the railway carriage industry in Egypt in the Suez Canal Economic Zone, gradually enhancing the local component, and enhancing the supply efforts for markets in the Arab region and Africa through public-private partnership.

In addition to signing the agreement Al-Mashat was keen to hold a session with the new South Korean ambassador to Cairo, and the delegation of the South Korean Ministry of Economy and Finance, which included the Director of the Project Development Department Young Hyun Kim, and the Deputy Director of the Project Development Department Jong Hyun Jeon in addition to officials from the South Korean Export-Import Bank and the Korean Cooperation Fund for Economic Development where they discussed the ongoing development cooperation portfolio and future projects.

It is worth noting that a high-level annual consultation session was held with the Korean Ministry of Finance and Economy, the Korean Cooperation Fund for Economic Development of the Korean Export-Import Bank and the Korean Embassy to review the developments of the current cooperation portfolio amounting to about $1.2 billion in several areas, and to discuss ways to provide concessional financing for development projects. The future that serves Egypt's 2030 plan, with the participation of many government agencies; the Ministries of Transport, Housing, Local Development, Petroleum, Finance, Irrigation, Electricity, the Suez Canal Authority, and the Agricultural Development Bank.

Al-Mashat had held a bilateral meeting with the Vice President of the Export-Import Bank of Korea, Soo Young Hwang, during the annual meetings of the African Development Bank in Sharm El-Sheikh last month, where bank officials welcomed the launch of a regional office for the bank in Cairo, which was intended to be a base for expanding the scope of the bank's operations in the African continent and confirms the strong bilateral relations between the two sides.