CAIRO, Aug. 17 (Xinhua) -- The Egyptian government approved on Thursday a loan from the Asian Infrastructure Investment Bank (AIIB) to finance a metro line in the northern coastal province of Alexandria, said the Egyptian cabinet in a statement.

The Beijing-based bank will provide Egypt with 250 million euros (about 272 million U.S. dollars) to fund the Abu Qir metro line in the Egyptian coastal city of Alexandria, based on a deal signed by Egypt's Ministry of International Cooperation and the AIIB in China last month.

The project, which is estimated to cost 1.5 billion euros, will be co-financed by the AIIB, the European Bank for Reconstruction and Development, the European Investment Bank, and the French Development Agency.

The new metro line will be developed on the existing Abu Qir railway line, which connects the city center with the Abu Qir area northeast of Alexandria, said the statement.

The project involves infrastructure works as well as providing related railway systems, including signaling, communication and control systems, according to the Egyptian cabinet.

The new metro line, upon completion, is expected to improve transportation and ease traffic congestion in Alexandria. ■