The board of the African Development Bank (AfDB) approved on Wednesday an €83 million (around $100 million) loan to finance the second phase of Egypt’s Electricity and Green Growth Support Programme (EGGSP II).
The funding is part of its budgetary support to Egypt’s government to strengthen its electricity infrastructure, which is expected to bolster the private sector and accelerate recovery from the COVID-19 crisis, the AfDB explained in a statement.
The EGGSP seeks to enhance the Egyptian power sector’s financial sustainability, governance and operations, as well as to advance the provision of clean, reliable energy to drive green growth.
Egypt’s successful reforms in the sector have led to greater private investment in utility-scale renewable energy projects, the AfDB statement read.
“Egypt’s Vision 2030 instills the sustainability ethos across all sectors. Energy and Electricity are among the top sectors in Egypt’s international development cooperation’s portfolio, pushing towards a green reform,” Egyptian Minister of International Cooperation Rania al-Mashat said.
“With 2021 being the year of private sector engagement, the Electricity and Green Growth Support Programme will contribute towards sustainable growth and job creation and catalyze the development of Egyptian private entities,” Minister al-Mashat added.
Malinne Blomberg, AfDB’s deputy director general for the North Africa region highlighted that the bank continues to actively engage with the Egyptian government and private sector companies to support the country’s medium-term development plan and economic reforms. The engagement has a particular focus on economic infrastructure such as energy, transport, water and sanitation, as well as industrialisation.
In addition to the AfDB, the French Development Agency (AFD), and Japan International Cooperation Agency (JICA) have also provided financial support to the EGGSP.
