Egypt & Austria Sign €8.5 Million Development Financing Agreement to Purchase Equipment & Machinery for Railways Development

In the presence of the Austrian Ambassador to Egypt, Georg Stillfried, the Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat signed an €8.5 million development financing agreement with Austria of which the Egyptian National Railways (ENR) will benefit so as to purchase machinery and equipment, including four maintenance machines, for the development of the railways. The secured financing aims to improve the level of safety, reduce the number of accidents on railways in Egypt, increase the efficiency of operations, expand the number of trains operating, decrease annual maintenance costs, and revamp the work environment so that the day to day runs smoothly. Al-Mashat emphasized the Ministry of International Cooperation’s keenness in strengthening economic relations with multilateral and bilateral development partners and in providing the necessary development financing alongside technical support across various sectors. The Ministry aims to support the development agenda of each sector, which goes hand in hand with fulfilling Egypt’s 2030 Vision; consistent with the United Nations Sustainable Development Goals (SDGs). The Minister also referred to Egypt’s distinguished joint relations with Austria that go back to the 1970s. Over the years, Austria took part in several joint committees and in signing of agreements that aim to strengthen economic relations between the two countries. Al-Mashat elaborated that the agreement is an interest-free development financing that reflects on the national efforts exerted to support flourishing the transportation sector and enhance its sustainability. Al-Mashat further elaborated that the transportation sector accounts for over 20% of the Ministry’s ongoing development cooperation portfolio at a value of $5.13 billion. These funds are utilized for the implementation of many projects, including the development of metro lines, the construction of national road projects, and the modernization of the railway network. In 2020, the Ministry secured development financing for the transportation sector that amounted to $1.7 billion. The Minister pointed out the continuous coordination between the Ministries of International Cooperation and Transportation in strengthening international partnerships with multilateral and bilateral development partners, all with the aim of supporting the transport sector to implement national priority projects, paving the way for a sustainable transportation network. The Austrian Ambassador to Egypt, Georg Stillfried said, “we are pleased to enhance cooperation with the Government of Egypt by signing a development financing agreement that will develop and modernize the country’s railway infrastructure via the exchange of expertise, technology and knowledge.” In 1975, Egypt and Austria signed an economic and technical cooperation agreement leading to seven joint committee sessions that were held to encourage and stimulate cooperation across various development fields such as electricity, agriculture, housing, and transportation. In 1996, a new agreement was also signed after Austria’s entry to the European Union (EU), and in that framework, two sessions of the Egyptian-Austrian joint committee were held.