Egypt secures US$253M from AfDB to finance Electricity and Green Growth Support Programme.
EGYPT – Egypt has secured a US$253 million loan from the African Development Bank (AfDB) to finance Egypt’s Electricity and Green Growth Support Programme (EGGSP).
The funding, according to Africa Energy Portal will help meet the government of Egypt’s financing requirements in the light of the COVID-19 pandemic.
The AfDB funds will also help Egypt support a sound electricity infrastructure base, a key enabler for the private sector and for the country’s competitiveness.
Egypt’s EGGSP reform programme seeks to promote a sustainable, competitive and diversified electricity sector that ensures secure energy supply and supports climate change mitigation and green growth.
“Accelerated deployment of the EGGSP reform programme is instrumental to meet energy needs, combat climate change and promote sustainable development in Egypt,” said minister of international cooperation, Dr Rania Al Mashat.
Dr Rania Al Mashat noted that the EGGSP multi-partner programme provides a model for effective coordination among development partners as the country continues to collaborate with all development partners to promote for a green recovery
Dr. Mohamed Shaker, Egypt’s minister of electricity and renewable energy, noted that the EGGSP aims to improve the security of energy supply by increasing the share of renewable energy and improving the financial sustainability of the enery sector.
The minister of electricity and renewable energy further noted that the EGGSP was committed to ensuring greater participation of the private sector in injecting more investments in renewable energy.
Over the last few years, Egypt has implemented robust reforms aimed at correcting macroeconomic imbalances and improving the business environment and fostering inclusive growth.
This progress, however, is threatened by the impact of COVID-19 on the different economic sectors, including the power sector, and on the vulnerable.
AfDB’s Deputy Director General for the North Africa Region, Mr. Yacine Fal explained that the financing provided under the EGGSP support will buttress measures being taken by the government of Egypt to combat the pandemic and to protect the most vulnerable during these difficult times.
Mr. Yacine Fal further noted that the AfDB funds will also help stimulate new private investments in the energy sector and increase the deployment of clean energy in line with Egypt’s targets for green growth.
In addition to the partnership with the national authorities, the AfDB is collaborating with the French Development Agency and Japan International Cooperation Agency on the Programme.
25 June 2020