Two Chinese state companies have signed a $1.2 billion dollar deal with Egypt to build a light rail system around Cairo. AVIC international and China Railway Group will build a 66-kilometer network with 11 stations. Trains will run at speed of up to 120 kilometres per hour to Cairo's surrounding districts. Yasser Hakim has more details on the project and its impact on Egypt and the Belt and Road initiative.

The Chinese Light Railway project has been hailed by Egyptian officials as a significant addition to the country.

AMR SHAATH EGYPTIAN DEPUTY TRANSPORT MINISTER "It serves the residential cities which have no access to public transportation at all. It's a very good link between Cairo and the new administrative capital. And it serves businesses especially those that will benefit from the belt and Road initiative."

Over 67 kilometers, the light railway will take passengers from Cairo to the New Administrative Capital passing through more than five new residential and industrial cities. The Railway will link the industrial cities with sea ports including the Suez canal, a main pathway between Africa, Asia and the rest of the World. It's an integral trade route along the Belt and Road initiative. The project is still at an early stage of planning. But it's expected to be ready in two years. This is a culmination of previous successes by China in the local railway sector.

AMR SHAATH EGYPTIAN DEPUTY TRANSPORT MINISTER "We worked with China recently, as we received 212 train carts which were in high quality and popular with passengers. Railway projects with China have been successful because it offers the opportunity of a fast, clean, air-conditioned and safe mode of transportation, away from the cars, buses and heavy traffic in the streets."

The $1.24 billion Light Railway project is being financed by Chinese banks.

YASSER HAKIM CAIRO, EGYPT "More cooperation is expected with China soon. Egypt is planning to build a high speed railway to link Gulf of Suez to the north coast as well as the country's first Monorail system. China has shown strong interest to apply for these projects and increase the scope of its investments in Egypt. Yasser Hakim CGTN Cairo."