Al Mashat, EIB Vice President Discuss Ways of Enhancing Cooperation

On Thursday, the Egyptian Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat met with the Minister of Civil Aviation H.E. Dr. Mohamed Manar and European Investment Bank’s (EIB) delegation headed by the Vice President Gelsomina Vigliott, in the bank’s first high-level visit to Egypt since the COVID-19 pandemic. The EIB’s delegation included: Lionel Rapaille, Head of the Neighborhood Department; and Alfredo Abad, EIB’s Regional Representation in Egypt, among many other senior bank officials.

The meeting looked into proposals for cooperation between Egypt and the EIB, as well as development projects in the aviation sector, climate action projects within the framework of COP27 and in line with the National Strategy for Climate Change 2050, and the bank’s participation in the upcoming Egypt - International Cooperation Forum (Egypt - ICF). The Egypt - ICF will be held prior to the COP27, representing a gathering of African governments to exchange visions and expertise ahead of the climate conference in November.

Al-Mashat welcomed the Vigliott, affirming the long-standing relations between Egypt and the bank, which led to development financing for over 110 projects across the public and private sectors. The Minister emphasized commitment for continuous cooperation with the EIB, pointing out that the Government of Egypt is working to implement perse projects within adaptation and mitigation, in line with the national strategies. She added that the Ministry of International Cooperation is coordinating with relevant entities to support by providing the necessary development financing and technical support to carry out these projects.

As the EIB is both the head of the Multilateral Development Banks (MDBs) and Europe’s climate bank, the Minister pointed out that MDBs play a key role in supporting climate action in Egypt, and developing and emerging economies. H.E. elaborated that innovative financing and de-risking tools are also much-needed to stimulate private sector participation in development, especially when it comes to climate action and adaptation projects. Within the overall portfolio with the EIB, 53% of its financing is dedicated to the private sector and 47% to the public sector.

For his part, the Minister of Civil Aviation H.E. Dr. Mohamed Manar expressed his happiness at meeting the EIB’s delegation to discuss potential opportunities for developing the aviation sector, as well as applauded Al-Mashat for fruitful cooperation between both ministries and the clear efforts made in coordinating with all relevant institutions. Manar affirmed his keenness to cooperate with the bank, as he reviewed a number of potential projects and opportunities that could benefit with support from the EIB.

For her part, Vigliott shared the long-standing relations between Egypt, the Ministry of International Cooperation, and the bank’s officials and HQ in Luxembourg. She added that Egypt is the largest country of operations for the bank outside of Europe, emphasizing close coordination between the government and the EIB, especially in accelerating climate action initiatives and in cooperation on sectors such as; energy, water, and transport.

The EIB Group Climate and Environment Advisory Council (CEAC)

The EIB Group Climate and Environment Advisory Council (CEAC), chaired by Christine Lagarde, President of the European Central Bank, included the participation of Al-Mashat, President of the EIB, Werner Hoyer, and the bank’s vice president, along with the European Union’s Commission, Frans Timmermans.

In a council of 11 members, the CEAC was held to provide advice and exchange expertise and experiences on activities implemented by the EIB, in line with achieving the climate goals. Participating through video conference, Al-Mashat emphasized the long-standing relations between Egypt and the EIB, extending back to 1970, which makes up for EUR 13 billion worth of the bank’s investments in the country.

The Minister referred to the 2021 - 2025 EIB Group Climate Bank Roadmap, and the Government of Egypt’s keenness in strengthening cooperation in this regard, especially in light of the country’s COP27 Presidency.

During the conference, Al-Mashat also noted the many adaptation and mitigation projects supported by the EIB, including the Wind Farm Gulf of Suez Project worth EUR 115 million, the Egyptian Power Transmission Program worth EUR 190 million, and the third phase of the third metro line project worth EUR 600 million.

As global efforts for climate action are required, including coordination between governments, private sector, civil society, and international financial institutions, supporting developing and emerging economies is necessary to achieve the climate goals.

Al-Mashat stated that COP27 will be especially important for the African continent, as it is one of the regions most impacted by climate change, despite contributing the least amount of harmful emissions, stressing the need for adaptation and mitigation projects, innovative and blended finance, de-risking tools, and private sector participation, to enhance the resilience of economies in face of crises.