Egypt officially approved a ¥100 billion ($690 million) concessional loan from Japan to finance the fourth tranche of the first phase of Cairo Metro's Line 4, following the publication of the presidential decree in the Official Gazette.
The loan, provided by the Japan International Cooperation Agency (JICA), will be used to finance the procurement of goods and services required to complete the latest stage of one of Egypt's largest urban transport projects, reinforcing bilateral development cooperation and supporting the expansion of Cairo's public transportation network.
Under the agreement, the financing carries highly concessional terms, including a 30-year repayment period and a 10-year grace period before principal repayments begin.
The project component of the loan will carry an annual interest rate of 0.75%, while the portion allocated to consultancy services will be subject to a lower rate of 0.65%.
The agreement also provides a 10-year disbursement period and includes a 0.2% administration fee, which will be reduced to 0.1% if loan withdrawals are completed within the agreed timetable without requiring an extension.
The financing agreement completed Egypt's legislative and constitutional approval process after receiving parliamentary approval on May 5, 2026, followed by presidential ratification on May 11, 2026.
The Ministry of Foreign Affairs subsequently confirmed the agreement's entry into force, allowing the loan to be implemented and the next phase of the Cairo Metro Line 4 project to proceed.
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