Egypt's development financing agreements with EIB worth €300M since beginning of 2022

CAIRO - 22 May 2022: The development financing agreements signed between Egypt and the European Investment Bank, at the beginning of 2022, amounted to €300 million, in addition to managing two grants from the European Union worth €24 million, according to the Ministry of International Cooperation.

 

The agreement came within the framework of the strategic relations between the government and the European Investment Bank, to support Development efforts, within the framework of the state’s vision 2030 and its quest to achieve sustainable development goals.

 

 

The Ministry of International Cooperation said, in a statement, that a soft development financing agreement was signed with the European Investment Bank, worth €221 million, for the "Development of the Tanta-Mansoura-Damietta Railway" project, which will be implemented by the Egyptian Authority for Egyptian Railways, as the project is of great importance, as part of the state's plan to develop transportation to become more sustainable, and to enhance the state's vision of transforming into a smart and sustainable infrastructure, in line with environmental standards.

 

The Ministry of International Cooperation stated that the joint relations between the government and the European Investment Bank resulted in the financing of many development projects in the transport sector at the level of railways, in addition to the implementation and development of metro lines. This supports the implementation of the sustainable development goals, especially the eighth goal: decent work and economic growth, the ninth goal: industry, innovation and infrastructure, and the eleventh: sustainable cities and communities.

 

 

The statement stated that within the framework of the state's efforts to enhance the sustainable management of water resources, develop water treatment plants, and expand the provision of water and sewage services to all parts of the Republic. A soft development financing agreement worth €78 million was signed to implement the "Helwan Sewage Treatment Plant", which is being implemented by the Ministry of Housing, Utilities and Urban Communities and the Executive Authority for Drinking Water and Sanitation.

 

 

In addition to a €20 million grant from the European Union and managed by the European Investment Bank for the "Western Sewage Treatment Plant in Alexandria" project, which is being implemented by the Ministry of Housing, Utilities and Urban Communities and the Executive Authority for Drinking Water and Sanitation.

 

The development financing agreements for water and sanitation projects support the state’s efforts to develop the water and sanitation sector, and also promote the implementation of sustainable development goals, especially the third goal: good health and well-being, and the sixth goal: clean water and sanitation, as well as the eighth goal: decent work and economic growth.

 

The map of matching development finances with the UN Sustainable Development Goals indicates that the current funds within the portfolio of the Ministry of International Cooperation, in favor of the sixth goal: clean water and sanitation, record $5.4 billion, representing approximately 20 percent of the total portfolio, to implement 39 projects, and it is one of the most acquired goals on finances.

 

The statement revealed the signing of a grant agreement worth €4 million from the European Union and managed by the European Investment Bank for the "Industrial Pollution Control - Phase III" program implemented by the Environmental Affairs Agency and the National Bank of Egypt.

 

The grant of the Industrial Pollution Control Program is a continuation of the European Investment Bank’s contribution to the project to combat industrial pollutants in its three phases since its inception in 1996, where the Bank contributed €125 million, in addition to other funds from a number of development partners, the project aimed to provide technical and financial support to industrial facilities at the level of the Republic to comply with environmental laws, as well as implementing projects for the use of alternative fuels in heavy industries to reduce solid waste of all kinds. The funds also included setting up an approved system in the local market to finance industrial pollution reduction projects, to reduce its percentage, improve environmental conditions and the work environment, and enhance the application of market mechanisms and the role of banks in financing investments in the field of pollution reduction.

 

 

The ongoing development cooperation portfolio between the Arab Republic of Egypt and the European Investment Bank amounts to about €3.5 billion by the end of 2021, to finance many development projects in the transport, water and sanitation sectors, energy, environment, small and medium enterprises and civil aviation.