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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

MOIC, EIB Sign Soft Development Financing Worth €135 million


Mon 01 Jan 2024 | 10:45 PM
Israa Farhan

The Ministry of International Cooperation signed a development financing agreement with the European Investment Bank (EIB), worth €135 million, and a €30 million grant from the European Union (EU), managed by the EIB.

This sign aims to contribute to financing the Sustainable Green Industry Project, for the benefit of the Ministry of Environment (Egyptian Environmental Affairs Agency), the relevant entity responsible for the technical aspects, and it is implemented by the National Bank of Egypt.

This comes within the framework of the close relationship between the Government of Egypt and the EIB, which extends over more than 4 decades and has strengthened development efforts in various government sectors and the private sector through concessional development financing, grants, and technical support.

Minister of International Cooperation Rania A. Al-Mashat said that the project aims to support the green transformation in the field of industry, by implementing measures related to climate change and environmental sustainability. 

The project will cover entire governorates of the country, with a focus on industrial sites and areas affected by pollution, especially air pollution, and water, to combat the negative impact on residents and the surrounding environment.

Through these funds, development finance will be provided to companies operating in the field of industry in the government and private sectors, to stimulate the implementation of investment plans in the following main areas: (eliminating industrial pollution of air, water, and soil - decarbonizing the industrial sector through the use of renewable energy, green hydrogen, and biogas- developing sustainable industrial practices through energy resource efficiency and circular economy interventions).

Moreover, the ministry also signed a cooperation agreement with the EIB worth €2 million for the preparatory technical study for sludge treatment in Egypt for the Ministry of Housing, Utilities and Urban Communities.

The agreement aims to provide technical assistance to prepare the feasibility study and determine financing, as well as provide solutions for sludge management in several priority sites in Egypt, to replicate the identified model solutions across other sites. 

At a later stage, this technical assistance process addresses a priority investment area for the Egyptian government and a priority. 

This is for the Ministry of Housing, Utilities, and Urban Communities, the Executive Authority for Drinking Water and Wastewater, and the Holding Company for Water and Wastewater.

The Minister highlighted the close relationship with the EU which is a major partner in many priority development projects, especially in the field of green transformation and enhancing climate action, as the EIB is the climate bank for Europe, pointing out that the Ministry of International Cooperation is working In coordination with national entities, to implement the new cooperation strategy 2021-2027 in priority areas. 

The new strategy is of great importance for Egypt to enhance the transition towards a green economy, especially in light of the EIB’s commitment to allocate investments for climate action and green recovery.

It is worth noting that the ongoing cooperation portfolio with the EIB amounts to €3.5 billion to finance 16 development projects in various sectors, including the transportation and sanitation sectors. 

Over the years 2020, 2021, 2022, and 2023, the EIB topped development partners in terms of financing available to the private sector, with a value of $2.8 billion.

The Ministry of International Cooperation launched the 2023 Annual Report under the title “International Partnerships to Achieve Sustainable Development: Platforms for Policy and Partnerships,” which includes the results of international partnerships with multilateral and bilateral development partners, and concessional development financing, from 2020 to 2023.