The three-year project aims to increase capacity on the network from 100,000 to 230,000 passengers per day, with measures including grade separation at busy road intersections and traffic signal prioritisation for trams. There will also be a 0.9km extension from Al-Raml Square to Ahmed Orabi Square in Al Manshiya.
In addition to the agreement with AFD, the ministry says the European Investment Bank has expressed an interest in co-financing the project with a €180m contribution.
In February Alexandria placed an order with Tatra-Yug, Ukraine, for 15 high-floor trams, which will enter service in 2019.
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