Egypt, AFD Ink Financing Deals Worth €715.6 Mln

Egypt's Minister of International Cooperation Dr. Rania Al-Mashat and Director of the French Development Agency (AFD) Rémy Riou signed a comprehensive package of development financing agreements worth €715.6 million that are aimed at accelerating the transition to a green recovery and investing in human capital.

The financial agreements came within the context of President Abdel Fattah El Sisi’s visit to France to strengthen bilateral relations, the International Cooperation Ministry said in a statement on Wednesday

The agreements come within the framework of the 2019-2023 Strategic Partnership in Social and Economic Development between Egypt and France, which is worth one billion euros.

[caption id="attachment_184879" align="aligncenter" width="1024"] Egypt, AFD Ink Financing Deals Worth €715.6 Mln[/caption]

To push for a green recovery and integrate the Sustainable Development Goals into development financing, a sum of €150 million will be dedicated to supporting the Energy Sector Budget Support Program, in addition to a one million euros grant to promote capacity building and developing an assessment tool on the direct and indirect socio-economic impact of the projects.

The agreement also supports the implementation of regulations and policies developed by the Egyptian Electric Utility and Consumer Protection Regulatory Agency, encouraging electric transport as well as the application of international standards and recommendations directed at Egypt.

To protect the health of Egyptian citizens amid the COVID-19 pandemic, Al-Mashat signed a comprehensive health insurance program worth €150 million, which will ensure that the targets of SDG Goal 3 for good health to achieve universal health coverage and access to quality essential health-care services are met.

Modernizing education is the key cornerstone of France-Egypt relations. As such, development financing agreements worth €12 million were signed for the re-foundation of the French University in Egypt, as well as a grant worth €2 million as part of Egypt’s strategy to develop and modernize the education system and create an economy that is based on innovation, competence, and essential modern skills.

[caption id="attachment_184880" align="aligncenter" width="633"] Details of The Financing Agreements[/caption]

The Minister also signed an agreement worth 95 million euros for the modernization of the Tanta/ Mansoura/ Damietta railway line, an agreement worth €250 million for the development of the Abu Qir railway line, and an agreement worth €52 million for the development of the sewage treatment plant in Helwan.

The comprehensive package also included the signing of an agreement worth €1.5 million to combat climate change in Egypt, as well as a partnership agreement worth €1.5 million to implement the technical cooperation project that supports the teaching of the French language in Egyptian public schools.

This is in addition to the signing of a cooperation agreement between Egypt and France for university hospitals to train healthcare workers, strengthen the institutional capacities of public hospitals, and promote equality in the health sector.

“The development financing agreements signed with the French Development Agency are fruits of the important visit paid by President Abdel Fattah El-Sisi to France to discuss bilateral cooperation in all fields, for these international agreements directly contribute to supporting the national goal for sustainable development,” Al-Mashat, stated.

The ministry is working to apply the principles of economic diplomacy to strengthen the ‘Global Partnerships for Effective Development’.

These principles include regularly organizing multi-stakeholder platforms to ensure that all projects between development partners are streamlined and effectively coordinated; adopting a consistent Global Partnerships Narrative People&Projects&Purpose (P&P&P) to showcase Egypt’s development success stories; and mapping ODA financing to SDGs for all projects.

The total cooperation portfolio between Egypt and France is worth €7.5 billion, covering several sectors transport and electricity, housing, sanitation, health, agriculture, small and medium enterprises, environment, basic and technical education sectors, according to the ministry.