Egypt announces US$2.24bn funding for sustainable projects
November 09, 2022
Egypt’s sustainable construction projects cover the transportation, water, renewable energy, food security and environment sectors
The Egyptian Ministry of International Cooperation has announced that it has secured development loans and grants totalling US$2.24bn to implement sustainable projects in transportation, water, renewable energy projects, food security, and environment.
The announcement for the project financing comes as the North African country hosts COP 27, the UN Climate Change conference. The financing breakdown per sector includes:
- A US$279m loan and a US$2m grant from the European Bank for Reconstruction and Development for the upgrading and renovating of Line Two of Cairo Metro.
- Another US$278m loan from the French Development Agency AFD to finance the upgrading and electrification of the existing 22-kilometre railway line between Alexandria and north-eastern town Abou Qir and converting it into a high-capacity metro line.
- A US$177m loan from Spain [Spanish export agency FIEM] to implement a project to modernise 23 trains of the 44-kilometre Line 1 of the Cairo Metro
- US$400m in funding from the World Bank for Cairo Alexandria Trade Logistics Development Project. The project includes implementing a railway bypass to the congested Alexandria–the 6th of October–Greater Cairo Area (GCA) railway corridor and upgrading the track and signalling on four segments
Sustainable Water Resources Management
- A US$12m grant from the German Agency for International Cooperation (GIZ) for the Nile Delta Water Management Program project.
- A US$1m grant from Switzerland for Drinking Water Management Project in Upper Egypt – Phase 2.
- US$50m loan from Kuwait Fund for Arab Economic Development to finance the construction of 4 desalination plants in South Sinai governorate.
Renewable Energy Projects
- A US$92m loan from the African Development Bank to finance Egypt’s Electricity and Green Growth Support Programme.
- A US$1m grant from AFD – the French development agency, for strategic technical cooperation between Egypt and France for developing green hydrogen sector.
- A US$500m loan from the World Bank Group for Emergency Food Security and Resilience Support Project. The project will finance the public procurement of imported wheat for the Bread Subsidy Program, the upgrade and expansion of climate-resilient wheat silos and sustainably improve domestic cereal production.
- A US$271m agreement with African Development Bank for the Food Security and Economic Resilience Support Programme
- US$111min development funding from the European Union under Food and Resilience Facility
- US$47 million from USAID for the Agribusiness for Rural Development and Income Increase project.
- An agreement signed with US Agency for International Development (USAID) for a US$15m grant for the Red Sea Initiative – a major new initiative aimed at conserving the Red Sea’s coastal ecosystem, while also promoting high-value, low-environmental impact ecotourism.