Cairo Metro at Risk of Being Shutdown for Failing to Pay EGP 300 Million in Outstanding Bills
Water and electrical companies are threatening to cut service for failing to pay EGP 300 million in outstanding bills accumulated over the last 18 months.
Many Egyptians who rely on Cairo's Metro for affordable public transportation may need to make other arrangements, as water and electricity companies have threatened to cut service to Cairo Metro for delaying payments for the past 18 months totalling EGP 300 million.
On Tuesday, Ahmed Adel Hadi, the spokesperson for the Egyptian Company for Metro Management and Operation (ECMMO), announced that the power companies have warned the metro service that they could cut the power and water if an estimated EGP 260 million electricity and EGP 40 million water bills are not paid. If they continue to fail to pay their outstanding bills the company has also threatened to take legal action.
The ECMMO continues to lose money and accumulate bills as a result of the difference between the current set fare and the actual value of the Metro tickets. According to a study released by the Transportation Ministry in August, Egypt currently subsidises the metro fare by 96 percent. The study suggests that the unsubsidised price of a ticket should be around EGP 25. Currently, the study stated that ECMMO is losing EGP 22 million monthly.
(Photo from vosizneias.com)