MOIC minister highlights challenges and efforts in achieving sustainable infrastructure development

CAIRO - 17 April 2024: In her address to the Global Infrastructure Facility (GIF) Advisory Council during the spring meetings of the International Monetary Fund and the World Bank, Minister of International Cooperation, Rania Al-Mashat, emphasized the crucial role of sustainable infrastructure in driving economic and social progress worldwide. However, she acknowledged the significant gap between the current global infrastructure needs and the projected spending by 2030, estimated at $15 trillion. This discrepancy poses a major challenge, particularly for emerging markets and developing economies that require substantial investments to meet their infrastructure requirements.

 

Minister Al-Mashat identified various obstacles hindering private sector participation in infrastructure projects, including the perceived risks associated with project implementation and governments' ability to structure financially viable projects while mitigating associated risks.

 

Highlighting the government's commitment to addressing climate change, Minister Al-Mashat mentioned the implementation of the National Strategy for Climate Change 2050. Additionally, she highlighted the Ministry of International Cooperation's launch of the country platform for the "NWFE" program, which focuses on water, food, and energy projects. The program consists of nine priority projects aimed at both mitigating and adapting to climate change. The minister emphasized the strengthening of cooperation with development partners to facilitate the necessary technical studies required for project implementation.

 

The Minister also discussed the collaboration between the government and the GIF Infrastructure Facility, which operates under the World Bank Group's umbrella. She highlighted five priority projects where the GIF provided advisory services. These projects included the development of a green hydrogen program in Egypt to attract foreign direct investments and support market expansion. The facility also assisted in attracting private sector investments in water desalination programs and promoting public-private partnerships (PPP) in dry ports projects and logistics centers. Furthermore, it provided technical support and consulting services to stimulate investment in priority infrastructure projects and enhance the investment environment.

 

Minister Al-Mashat's speech underscored the importance of bridging the infrastructure financing gap to accelerate sustainable development globally. Her remarks emphasized the government's commitment to climate change mitigation and adaptation, as well as the efforts to facilitate private sector engagement through advisory services and partnership initiatives.