The European Bank for Reconstruction and Development (EBRD) is offering a $322.8 million financing project to expand the fleet and services of the Egyptian National Railways (ENR).

EBRD will finance up to 100 new diesel locomotives since the ENR's existing locomotives average 30 years old, according to an ERBD press release. The age of the existing locomotives has made maintenance and environmental concerns a factor for replacement. New locomotives will be more reliable and provide higher quality service while reducing carbon emissions and fuel consumption, the release said.

“This project will provide a better quality of life and economic development opportunities," Sahar Nasr, minister of investment and international cooperation, said in the release. "It complements the EBRD’s continued support for Egypt’s development strategy of building new roads, highways, tunnels and connections across the country."

Janet Heckman, EBRD managing director for the region, said that this is an important step in providing reliable rail service.

"We are proud to contribute to the development of a sector of utmost importance for Egypt," she said in the release. "This is a key step in supporting the development and reform of the transport sector in line with the EBRD’s Green Economy Transition approach. Providing a reliable rail service is important for the quality of people’s lives and their businesses and consequently the whole economy."

So far, the EBRD has invested $2.5 billion in nearly 50 projects in Egypt.