World Bank set to loan Egypt $500 mn for housing project

Negotiations over a $500 million loan has been finalised between Egypt and the World bank, announced minister of housing Mostafa Madbouli in a press statement.

The loan, allocated for the 'social housing' or the 1mn residential units project, will be paid back by Egypt over the course of five years.

The project which has been unveiled late 2014 aims to build 1 million residential units across the country for low-incomers.

According to Madbouli, the NUCA will start implementing a number of residential units on an area less than 90 metres each to suit the citizens' income particularly in new cities in Upper Egyptian governorates.

Last September, the World bank agreed to offer Egypt $1.5 billion (LE 10.5 billion) in financing for social housing and sanitation for villages over a period of three years, housing, utilities and urban development.

The World Bank's commitment to Egypt currently includes 25 projects for a total of US$4.9 billion (LE34.3 billion) as well as 43 trust fund grants worth US$190.2 million (LE1.3 billion) in the sectors of energy, transport, water and sanitation, agriculture, irrigation, health and education.