The funds will also help Egypt develop the tourist-oriented city Sharm el-Sheikh, the development bank said. It added that the country as a whole is expected to benefit from economic growth, new job opportunities and compete globally.

Solomon Asamoah, AfDB vice-president in charge of regional integration, infrastructure and private sector, hailed the loan for infrastructure development as a ‘landmark’ transaction.

‘It represents the signing of the first loan accord with Egypt in over four years. The project will mark the first bank’s engagement with Egypt in the transport sector, and ultimately, support economic growth in the country’s towns and cities,’ he said.

‘We are pleased the project also marks the first operation to be approved with a loan from the Africa Growing Together Fund (AGTF), which we hope will help bridge the infrastructure financial gap in Africa as a whole and Egypt in particular.’

Egypt’s international cooperation minister, Naglaa A El-Ehwany expressed her ‘sincere gratitude’ to the AfDB, which she said, ‘has always been there and very supportive to us’.

‘With this project, we want to convey a message to the world that Egypt is back. We hope the bank will continue to encourage more private sector projects in our country,’ she said.

‘The bank’s engagement with us in the private sector will be of great support.’