Egypt’s House of Representatives has approved two agreements that are set to strengthen the country’s electricity network and develop its sustainable renewable energy strategy, according to Minister of International Cooperation Rania Al-Mashat.
The two agreements, worth approximately €336m, have been signed with the European Bank for Reconstruction and Development (EBRD) and the Agence Française de Développment (AFD).
The agreements will help finance development policies to achieve Egypt’s 2030 National Agenda and the United Nations’ (UN) 17 Sustainable Development Goals (SDGs).
Al-Mashat added that these agreements are particularly significant as 2020 is regarded as a critical year in fighting climate change. She noted that the world’s top scientists have warned that there must be further coordinated and comprehensive efforts to avoid the most extreme climate change scenarios in the next few years.
The agreements are set to help Egypt achieve multiple SDGs simultaneously. These include: Goal 7, to ensure access to affordable, reliable, sustainable and modern energy for all; Goal 9 to promote industry and innovation; Goal 12 to promote responsible production and consumption; and Goal 17 to form partnerships to achieve the goals.
The minister added that the first agreement was signed with the EBRD, and will provide €182.9m to strengthen Egypt’s electricity network. This will take place through the construction and improvement of five substations as across Egypt, including in the South Sinai, Eastern, Port Said, Assiut and Minya governorates. It will also provide a €150,000 grant to the Egyptian Electricity Transmission Company (EETC) to support internal capacity building.
To maximise the impact, Minister Al-Mashat additionally signed an agreement with the AFD, to provide €150m in financing to implement reforms in Egypt’s electricity network. This comes in addition to a grant of €1m that will be delivered over three years, and which will push the country’s Vision 2030 national sustainability agenda forward.
The Egyptian government adopted the agenda in October 2016, to enhance the financial sustainability, management and operational efficiency of the country’s energy sector. The agenda is also providing support to the country’s renewable energy sector, to unlock Egypt’s green transformation.
The current cooperation portfolio between Egypt and France amounts to around €1bn. The financing is being delivered to a range of sectors across Egypt, including transport, electricity, small- and medium-sized enterprises (SMEs), housing, utilities, and urban development, among others.
In 2019, Egypt and the AFD jointly signed a Memorandum of Understanding (MoU), focusing on a strategic partnership between the two sides. The partnership will see the French agency provide €1bn to support development projects in Egypt between 2019 and 2023.