The African Development Bank has approved a Euro 225 million loan to finance Egypt’s Electricity and Green Growth Support Program (EGGSP). The EGGSP reform program seeks to promote a sustainable, competitive and diversified electricity sector that supports climate change mitigation and growth of clean energy.
“The EGGSP aims to improve the security of energy supply by increasing the share of renewable energy and improving the financial sustainability of the electricity sector with a view to ensuring greater participation of the private sector in injecting more investments in renewable energy,” said Dr Mohamed Shaker, Minister of Electricity and Renewable Energy.
The Bank’s Country Manager for Egypt, Malinne Blomberg, highlighted that the newly approved program is a continuation of the Bank’s partnership with the Government of Egypt on the country’s reform agenda. The bank is now shifting the focus to meet the imminent needs in light of Covid-19 and the recovery phase which depends on an efficient and sustainable energy sector.
In addition to the partnership with the national authorities, the Bank is collaborating with the French Development Agency and Japan International Cooperation Agency on the Program.
Over the last few years, Egypt has implemented robust reforms aimed at correcting macroeconomic imbalances and improving the business environment and fostering inclusive growth. This progress, however, is threatened by the impact of Covid-19 on the different sectors including the power sector.
The financing will support the measures taken by the Government of Egypt to combat the pandemic. It will also help stimulate new private investments in the electricity sector and increase the deployment of clean energy in line with Egypt’s targets for green growth.