Egypt’s Ministry of International Cooperation has signed an agreement with the Agence Française de Développement (AFD) allocating a grant worth €151m to the energy sector budgetary support program.
The new agreement falls under the ministry’s plan to form a multi-donor platform gathered around a shared policy matrix. It looks to secure immediate funding from multilateral and bilateral development partners for budgetary support, whilst providing assistance to mitigate the impact of the coronavirus (COVID-19) pandemic.
The agreement was signed by Egypt’s Minister of International Cooperation Rania Al-Mashat, Ambassador of France in Egypt Stéphane Romatet, and AFD Country Director Fabio Grazi.
It provides financial support for the energy sector according to the goals of the Egyptian government’s comprehensive Sustainable Energy Strategy 2035 adopted in October 2016, and which emphasises the importance of renewable energy.
Minister Al-Mashat explained that, under the agreement, the programme targets two objectives, the first of which is to enhance the electricity sector’s financial sustainability, governance and operational efficiency. The second objective will focus on supporting clean energy in Egypt, for fostering growth in the green energy sector.
The grant will also provide technical assistance over three years to the Ministry of Electricity and Renewable Energy and its affiliated utilities. Support will be given to reforming the sustainable energy sector. This will take place through capacity building, and laying assessment methodologies for the direct and indirect socio-economic impact and regulations set by the Electricity Regulation Authority (ERA). The project will also support a greener urban and mobility transition to electric-powered transportation.
Mohamed Shaker, Minister of Electricity and Renewable Energy, praised Minister Al-Mashat’s coordination efforts with the AFD to finalise the agreement.
For his part, Stéphane Romatet also praised the cooperation efforts, saying, “Signing this financing agreement in favour of the electricity sector is good news for both France and Egypt, as it sheds light on our joint commitment to agreement’s provision for financing the required technical assistance needed for reforming Egypt’s energy sector support our partnership in the energy sector.”
He added, “It also greatly serves efforts in the climate field, as the funding allows us to accompany Egypt in its journey to develop a variety of energy sources with low carbon emissions.”