“The planned improvements are expected to benefit low-income Egyptians, around 40% of the population, who depend on trains as an affordable mode of transportation,” the bank said in a statement.
The credit facility comes days after a fatal train crash in southern Sohag governorate last month.
A high-speed passenger train collided with another which had suddenly stopped. The incident left dozens injured and at least 18 people killed.
Transport Minister Kamel al-Wazir accused human error of being the cause of the crash and authorities who promised penalties for those responsible for the collision rounded up eight people, reports The New Arab.
Egypt has witnessed several train accidents in recent history. The deadliest occurred in 2002 when 373 people died in a fire that ravaged a crowded train south of Cairo.