CAIRO: The trade deficit in 2013 in the Railway Authority is estimated at 2 billion EGP with an increase of about 450 million EGP compare to 2012, a report issued by the Central Auditing Organization stated.
According to the report, the Railway Authority wastes about 4.5 billion EGP which Egypt receives from the World Bank in form of loans and grants, al-Masry al-Youm newspaper reported Thursday.
Last February, Minister of Transportation Ibrahim El-Demeiry said that the ministry received a grant from the World Bank which amounted to $1.3 million in order to develop the public transportation sector and train its staff, state-run MENA reported.
In previous statements, World Bank Regional Director Hartwig Schafer said last May that Egypt needs $700 million a year to maintain roads, more than the $70 million currently paid annually, according to MENA.
The report included that some sectors in the Railway Authority ignore the assets of the Railway Authority which are estimated at 22 billion and 735 million EGP, in addition to ignoring the authority’s projects including rail crossings that cause massive accidents.
Egyptian and foreign companies invested in about 200 crossings since 2009, which were supposed to end by 2011, but weren’t finished, the report read, adding that the authority’s officials didn’t benefit from the grants of the World Bank which reached about 4 billion EGP.
The report added that during inventory reporting processes, they found that there are assets enrolled on the database of the authority worth 5 million and 118 thousand EGP but they are not used in any actual projects.
The report denounced the irresponsibility that resulted in wasting billions of Egyptian pounds, and criticized an order from former minister Hisham Abdel Lateef to buy 180 million EGP worth of spare parts.
CAO urged the authority to find the reason behind the increase of spending and decrease in revenues while the authority said that the problem increased due to the increase of expenses and due to the security situation the country was facing the past couple of months.
The World Bank issued a report in May stating that Egypt loses 47 Billion EGP ($8 billion) every year due to traffic congestion in the Greater Cairo Metropolitan Area (GCMA) and the number is expected to rise to 105 billion EGP by 2030. Egypt’s 2011 GDP was $229.5 billion which means that the cost of congestion in the GCMA is 3.6 percent of Egypt’s total GDP.