Egypt’s parliament approved two deals with the European Bank for Reconstruction and Development (EBRD) and the French Development Agency (FDA) worth €336 million to boost Egypt’s electricity network and finance development policies, International Cooperation Minister said.
The deals are important as 2020 has been regarded as a critical year in fighting climate change, with scientists warning that there must be more coordinated and comprehensive efforts to avoid the most extreme scenarios of climate change within the next few years, Rania Al-Mashat added.
The deals also help meet multiple SDGs simultaneously, including Goal 7 to ensure access to affordable, reliable, sustainable and modern energy for all, Goal 9 to promote industry and innovation, Goal 12 to promote responsible production and consumption, and Goal 17 to form partnerships to achieve the goals.
The deals with EBRD will provide €182.9 million to strengthen Egypt’s electricity network through the construction and improvement of five substations in several governorates including South Sinai, Port Said, Assiut, and Minya, as well as provide a grant of €150,000 for the Egyptian Electricity Transmission to support internal capacity building.
Egypt has been a member of the EBRD since its establishment in 1991, with investments in Egypt’s development amounting to more than €7 billion in 120 projects in the country since 2012.
The deals with the FDA provides financing of €150 million that is expected to be used in applying reforms on electricity, in addition to a grant of €1 million for three years to push the 2030 national sustainability agenda forward, which was adopted by the government in October 2016, according to the minister.
It aims to enhance financial sustainability, management and operational efficiency of the energy sector, and support the use of renewable energy to unlock Egypt’s green transformation.
The cooperation portfolio between Egypt and France amounts to around €1 billion in transport, electricity, small and medium-sized enterprises (SMEs), housing, utilities, urban development, agriculture, health, environment, and budget support sectors.
Egypt also signed a memorandum of understanding (MoU) on strategic partnerships with the FDA in 2019, which provides €1 billion to support development projects from 2019-2023, according to the FDA.
