The African Development Bank (AfDB) approved on Wednesday a €225m loan to finance Egypt’s Electricity and Green Growth Support Program (EGGSP), according to Minister of International Cooperation Rania Al-Mashat announced.
The programme aims to promote sustainable development and mitigate climate change impacts on Egypt.
Minister Al-Mashat pointed out that the loan will help the government meet the EGGSP’s financing requirements, mitigate the socio-economic impact of the coronavirus pandemic, and support electricity infrastructure essential for the private sector and for investment attraction.
“Accelerating the EGGSP implementation is necessary to bridge the energy access gap, fight climate change, and promote sustainable development in Egypt. This multi-donor programme provides a model for effective donor coordination, and we continue to collaborate with all development partners to promote green recovery,” she said.
Moreover, Minister of Electricity and Renewable Energy Mohamed Shaker said the EGGSP aimed to enhance energy supply by expanding power generation from renewable energy resources and enhancing financial sustainability of the sector. He noted that this would ensure larger private sector engagement and more investments in the renewable energy sector, in addition raising the efficiency of energy services to mitigate climate change impacts and sustain green growth, besides improving corporate governance and competitiveness.
AfDB Director General for North Africa, Mohamed El Azizi, praised Egypt’s recent efforts in combating the COVID-19 implications, stating: “Whilst the pandemic has put extreme pressure on the economy and the social situation, the economic reforms undertaken by the government and the Central Bank of Egypt over the past few years have helped create greater resilience and provide a buffer against shocks such as COVID-19.”
At the same time, AfDB Country Manager for Egypt, Malinne Blomberg, pointed out that the programme was a continuation of AfDB’s partnership with the Egyptian government on its reform agenda, which helps meet the imminent needs in light of the COVID-19 implications. He added that the project also contributed to preparing for the post-pandemic phase which would have to rely on the energy sector that should be both effective and sustainable.