Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, held talks with a World Bank delegation on Sunday to strengthen cooperation on financing power infrastructure projects, including plans to establish a financial guarantee fund aimed at mobilizing private investment in the electricity and renewable energy sectors.
The meeting, held at the ministry's headquarters in Egypt's New Administrative Capital, was led by Neeraj Verma, the World Bank's Practice Manager for Finance, Competitiveness and Investment. Egypt's Minister of Planning and Economic Development, Ahmed Rostom, joined the discussions via video conference alongside senior officials from the electricity sector.
The talks focused on advancing joint projects to modernize Egypt's national electricity grid, improve its capacity to integrate renewable energy, and secure long-term financing for clean power generation and other strategic infrastructure investments.
A key item on the agenda was the proposed establishment of a financial guarantee fund for electricity and renewable energy infrastructure projects. The fund would provide guarantees covering debt servicing, repayment obligations, and contract termination risks, reducing project risks, improving access to financing, and encouraging greater private-sector participation in infrastructure development.
The two sides also reviewed cooperation on digital transformation, capacity building, workforce training, and the transition toward a smart electricity grid. Discussions further covered regional electricity interconnection projects, which form part of Egypt's strategy to position itself as a regional energy hub linking Africa, Asia, and Europe.
Egypt is targeting renewable energy to account for 45% of its electricity generation mix within the next two years, supported by continued investments in grid expansion and clean energy infrastructure.
Esmat said cooperation with the World Bank supports the implementation of Egypt's electricity sector reform strategy and restructuring program, emphasizing the importance of leveraging international expertise and advanced technologies to enhance grid reliability, improve operational efficiency, and expand the use of renewable energy.
He described the World Bank as a key development partner that has played an important role in financing electricity and renewable energy projects, including expansions of the national grid and generation capacity. Esmat added that the ministry would continue working with international financial institutions to advance sustainable development goals and ensure reliable, sustainable electricity supplies.
The minister also said Egypt is pressing ahead with plans to localize energy technologies, expand domestic manufacturing, and increase private-sector participation in renewable energy projects as part of the government's broader green economy strategy.
Planning Minister Ahmed Rostom said cooperation with the World Bank remains a cornerstone of Egypt's development agenda, adding that the proposed infrastructure financing and guarantee mechanism represents an innovative model for mobilizing long-term funding, particularly in local currency, while strengthening public-private partnerships and increasing private investment in the economy.
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