CAIRO - 2 February 2022: The Ministry of International Cooperation releases details on development financing agreements that were signed for electricity, renewable energy and petroleum, and the environment in 2021 from multilateral and bilateral development partners, which amount to $1.04 billion in total.
To help accelerate the flow of financing to support climate-resilient and environmentally sustainable projects, the Ministry’s annual report 2021 ‘Engaging for Impact Towards Our Common Future’ mentions in detail the development financing agreements that were signed from development partners including Germany, the Swedish International Fund (Sida), and the European Bank, Japan, African Development Bank, World Bank, and Agence Française de Développement (AFD).
Align with the overall development priorities and the SDGs, the development financing agreements accelerate Egypt’s transition towards a green economy by closing the funding gap and bridging technological gaps, which achieves the following SDG goals:
SDG 7: Clean and Affordable Energy
SDG 9: Industry, Innovation and Infrastructure
Goal 11: Sustainable Cities and Communities
Goal 12: Responsible Consumption and Production
Goal 13: Climate Action
The annual report discloses the details of 5 agreements that were signed for electricity, renewable energy and petroleum, which includes: a grant worth $10 million from Germany to finance the project to enhance energy efficiency, a grant from the Swedish International Fund worth $1 million for the project to improve the efficiency of the electric network.
An agreement was signed with the European Union for Reconstruction and Development worth $50 million as additional funding for the Energy Efficiency and Upgrade Programme for the Suez Oil Processing Company, and a grant from Germany worth $17 million for a project to upgrade hydroelectric stations.
This is in addition to development financing worth $962 million from the International Islamic Trade Finance Corporation to finance the import of basic commodities such as petroleum, oil and gas products. In addition to these agreements, two development financing agreements worth $330 million were signed, the first amounting to $238 million to finance development policies in the energy sector and budget support from Japan, in addition to financing worth $92 million from the African Development Bank to finance the second tranche of the Electricity and Green Growth Support Program (EGGSP).
The annual report discloses details on the development financing agreements that were signed for the environment sector, which are worth $230 million in total, which include: $200 million from the World Bank to manage air pollution in Greater Cairo, in addition to a grant of $16 million euros from the European Union.
Three other grants were obtained: €5 million from the European Union for Industrial pollution abatement, €7 million from Germany to finance the national program for solid waste management, and €2 million from the French Development Agency (AFD) for the Transforming Financial Systems for Climate programme.
In 2021, the Ministry of International Cooperation launched a multi-stakeholder platform with the World Bank Group and the Ministry of Environment to prepare for Egypt’s climate action report and collectively review the roadmap for climate action - identifying the government’s priorities and the national mechanisms for assessing and monitoring the effects of climate change on the economy.
In light of her first visit to Cairo since her election in October 2020, President of the European Bank for Reconstruction and Development, Odile Renaud-Basso, signed a development financing agreement and 3 memoranda of understanding (MoUs) between the bank, the Government of Egypt and the private sector.
The Ministry secured a total of $10.2 billion of development financing agreements, which includes $8.7 billion for the public sector, and $1.56 billion for the private sector.