Egypt signs € 135m deal with EIB for sustainable green industry project
THE International Cooperation ministry has signed a developmental financing agreement with the European Investment Bank (EIB), amounting to €135 million (US$149,6 million) and a grant from the European Union worth Є30 million (US$33,2 million) managed by the EIB.
These funds are earmarked to contribute to the financing of the "Sustainable Green Industry" project for the Environment ministry, managed by the Environmental Affairs Agency, and implemented by the Egyptian National Bank, according to a press statement issued, Monday.
The project aims to support the green transformation in the industrial sector by implementing climate change and environmental sustainability measures.
The project will cover all governorates of the country, with a focus on industrial sites and areas affected by pollution, especially air or water pollution, to combat the negative impact on residents and the surrounding environment.
Through these funds, loans will be provided to companies operating in the industrial sector, both in the public and private sectors, to encourage the implementation of investment plans in key areas. These include eliminating industrial pollution of air, water, soil, and workplaces, removing carbon from the industrial sector through the use of renewable energy, green hydrogen, biogas, and developing sustainable industrial practices through energy resource efficiency and circular economy interventions.
On another note, the International Cooperation ministry also signed a cooperation agreement with the EIB for Є2 million to prepare the technical pre-feasibility study for sludge treatment in Egypt, on behalf of the Housing, Utilities, and Urban Communities ministry.
The agreement aims to provide technical assistance for preparing the feasibility study, identifying financing, and providing solutions for managing sludge in priority sites in Egypt. The ultimate goal is to replicate the specified model solutions across other sites. In a later stage, this technical assistance initiative targets an investment priority area for the Egyptian government, particularly for the Housing, Utilities, and Urban Communities ministry, the Executive Authority for Drinking Water and Sanitation, and the Holding Company for Water and Wastewater.
It is worth mentioning that the current portfolio of cooperation with the European Investment Bank amounts to €3,5 billion for financing 16 developmental projects in various sectors, including transportation and sanitation.
In the years 2020, 2021, 2022, and 2023, the European Investment Bank has consistently been a development partner, offering available financing to the private sector amounting to US$2,8 billion.