The first agreement, valued at €53 million, comprises of concessional development financing as well as a grant for the smart grid development project under the Ministry of Electricity and Renewable Energy
The Ministry of International Cooperation (MoIC) entered into two financing agreements and grants with the German KfW Development Bank, amounting to €76 million, the ministry announced on Sunday. These agreements aim to support various initiatives in the electricity sector, foster the adoption of sustainable practices, and facilitate the transition towards renewable energy sources.
The first agreement, valued at €53 million, comprises of concessional development financing as well as a grant for the smart grid development project under the Ministry of Electricity and Renewable Energy.
The project aims to increase the capacity of the "Abis transformer station" by 450 megawatts, reduce power loads in Abu Qir, support network stability after decommissioning low-power stations, and improve access to renewable energy from the Red Sea to the northern coastal region.
Under the second agreement, worth €23 million, two distinct projects will be implemented. The initial project, known as the Energy Efficiency Project "2", is valued at €8 million and falls under the responsibility of the Ministry of Electricity and Renewable Energy. The purpose of this project is to facilitate investment in energy efficiency projects, including small-scale photovoltaic energy.
The remaining €15 million from the second agreement will be dedicated to the rehabilitation project of hydroelectric station "2", playing a crucial role in restoring and enhancing these stations. This funding will be utilized for upgrading the lighting system equipment, voltage regulators, and speed regulators at the High Dam power station, as well as speed regulators at the Aswan station.
These agreements came within the framework of implementing the joint political declaration issued in November 2022, with Germany and the United States of America to support the energy axis within the NWFE program, said Minister of MoIC, Rania Al-Mashat.
Germany pledged to provide financing worth €258 million in the form of concessional financing, debt swaps, and grants to support the energy axis through the “NWFE” program.
Recently in December, MoIC reported that Egypt received $38.8 billion in financing through several multilateral development partners in the past 4 years, distributed to support the country’s green transition, food security, sustainable infrastructure, human capital, and employment rates.
In its annual report “Platforms for Policy & Practice,” Al-Mashat shared that the ministry secured $28.5 billion for the public sector and $10.3 billion for the private sector in Official Development Assistance (ODA) between 2020 and 2023.
