CAIRO - 27 February 2024: Egypt enjoys strong relations and a huge portfolio size with the European Investment Bank (EIB), in light of the role played by the Ministry of International Cooperation to develop and strengthen economic relations with multilateral and bilateral development partners and international institutions.
These efforts are done in a way that enhances the country’s development vision.
The European Investment Bank (EIB) is the financing arm of the European Union and the Climate Bank for the continent of Europe, and one of the largest international multilateral institutions in the world, and one of the largest providers of climate finance.
The EIB provides financial and non-financial services in more than 160 countries around the world, where joint relations between the Arab Republic of Egypt and the European Investment Bank began in 1979, where the bank works, as the financing arm of the European Union, to provide concessional development financing and technical support for projects for the government and private sectors. Since this date, the bank has pumped investments worth 13.7 billion euros into the government and private sectors.
The year 2020 is considered a new starting point for joint relations between Egypt and the European Investment Bank, as a joint statement was issued to enhance economic cooperation and support relations with the government and private sectors, during a meeting with Dr. Rania Al-Mashat, Minister of International Cooperation, and Flavia Balanza, Director of Financing Operations for Neighboring Countries of the European Union. At the European Investment Bank.
In light of cooperation with the European Union, a new partnership framework was developed with the European Investment Bank for the years 2021-2027, which enhances areas of joint cooperation, especially in the sectors of health, education, environment, energy, water treatment, transportation, agriculture, and supply, and supports joint work with the private sector, within the framework of the initiative “Team Europe” through which the European Commission and the EU Neighborhood, Development and International Cooperation Instrument (NDICI) are aimed at stimulating the green transition and promoting sustainable development efforts.
In 2020, the EIB launched the Climate Roadmap 2021-2025, which highlights how the Bank will support climate action through several key points including: ensuring a just transition for all, supporting the Paris Agreement-compliant process, and accelerating the transition through green financing, building strategic coherence and accountability.
The Bank Group aims through this plan to implement its ambitious agenda to support one trillion euros in climate action and environmental sustainability investments in the decade until 2030 and to provide more than 50% of the European Investment Bank’s financing for climate action and environmental sustainability by the year 2025.
The European Investment Bank plays a vital role in implementing the projects of the national platform of the “NWFE” program, the link between water, food and energy projects.
It also plays the role of the main development partner in the sustainable transport “NOFE+” axis. Earlier, the European Investment Bank pledged to provide soft financing, with a value of 4 billion euros in 2030 for the “NOVI” program.
The European Investment Bank is the largest financing development partner for the private sector in Egypt, and according to the annual report of the Ministry of International Cooperation, the total financing and investments made available by the bank in the period from 2020 to 2023 amounted to about $2.8 billion.
The Arab Republic of Egypt is the largest country of operations for the European Investment Bank, outside the European Union countries, in light of the multiplicity of mechanisms and areas of joint cooperation and in view of the great development efforts undertaken by the country and the number of private sector companies with which the bank deals.
The value of the ongoing cooperation portfolio to finance state development projects amounts to $3.6 billion to finance 18 development projects in various sectors, including: transportation, environment, water and sanitation, small and medium-sized companies, and civil aviation.
Furthermore, from 2020 to 2023, the ongoing cooperation portfolio amounts to $1.896 billion in development finance grants and technical assistance to finance 7 projects in diverse sectors, including transportation, environment, water and wastewater, making it the second largest development partner at the level of the European team that provided development funds to Egypt during that period and the first European partner to provide funds to Egypt at the public and private sector levels.
Comments
Leave a Comment