In Egypt, the House of Representatives has just validated loan agreements from the European Bank for Reconstruction and Development (EBRD) and the French Development Agency (AFD). The 336 million euros lent by the two banks are intended to finance renewable energies.
The two loan agreements recently validated by the House of Representatives aim to contribute to the implementation of the sustainable development policy in the electricity sector in Egypt. The two agreements provide for loans worth a total of 336 million euros from the European Bank for Reconstruction and Development (EBRD) and the French Development Agency (AFD).
Through its 182.9 million euro loan, the EBRD is helping to finance a project aimed at strengthening Egypt’s electricity network through the construction of five substations in the governorates of South Sinai, East Sinai, Port Said, Assiut and Minya. The European Bank’s package also includes a 150,000 euro grant for capacity building within the Egyptian Electricity Transmission Company (EETC).
Electricity sector reform
The House of Representatives also validated a 150 million euro loan from AFD. The funds will be used to implement reforms in Egypt’s electricity sector. In concrete terms, the aim is to improve the sector’s financial viability, management and operational efficiency. The program launched by the Egyptian government in 2016 also aims to support renewable energy production.
According to the Egyptian Minister of International Cooperation Rania Al-Mashat, the implementation of reforms in the electricity sector and the production of renewable energy will “launch Egypt’s green transformation”. These initiatives are part of the “national sustainability program Vision 2030” that AFD is also supporting through a 1 million euro grant that it will provide over three years.
For Minister Rania Al-Mashat, the EBRD and AFD financing is intended to help Egypt achieve several Sustainable Development Objectives (SDOs) simultaneously. “These include Goal 7, which aims to ensure access for all affordable, reliable, sustainable and modern energy; Goal 9, which aims to promote industry and innovation; Goal 12, which aims to promote responsible production and consumption; and Goal 17, which aims to form partnerships to achieve the SDGs,” Rania Al-Mashat said.
Jean Marie Takouleu