Japan will loan Egypt US$1.2 billion to fund its fourth metro line, Egyptian Planning and International Cooperation Minister Fayza Abouelnaga said Monday.
In a press statement, Abouelnaga said the loan has an interest rate of 2 percent to be paid back over a 40-year period with a 10-year grace period.
The approval came during the World Bank and International Monetary Fund's joint meeting in Washington, Abouelnaga said, adding that the loan terms are extremely lenient – more like a grant than a loan.
She said constitutional procedures for the loan will begin immediately to present it to the new parliament.
The Egyptian government is currently working on completing Cairo's third metro line. Work started on the line in 2007 and is expected to finish in 2013. The line extends from Uboor City, west of Cairo, to Cairo International Airport, east of Cairo.
Last year, the Egyptian government announced plans to establish a 17-km fourth metro line to connect Giza with 6th of October City.
Translated from the Arabic Edition