Kuwait is providing Egypt with a grant of $250 million to invest in the nation's troubled railway system.
The funds will be used to fund an electronic traffic signal project along the railway from Banha to Zagazig, north of Cairo.
The Kuwait Fund for Arab Economic Development (KFAED) will supply $100 million and the remaining $150m will come from the Arab Fund for Economic and Social Development Initiative (AFESD).
The Egyptian Railways offer a much-used and cheap mode of transport however the railway's efficiency and safety record has suffered in the wake of Egypt’s revolution two years ago.
In recent times there have been numerous deadly train accidents as well as strikes over low wages, mismanagement and an increasingly overworked and understaffed work force.
The International Monetary Fund (IMF) is currently reviewing ways to improve Egypt's railway system, in particular the proposed redevelopment of the Tanta-Damietta line north of the capital.