Al-Mashat explained that the agreement's development financing is considered soft financing, characterized by long grace and reimbursement periods of 25+ years
Minister of International Cooperation Dr. Rania A. Al-Mashat revealed the details of Egypt’s latest development financing agreements signed with France earlier this week.
The Minister explained that the new package totals to €1.76 billion encompassing, €776 million from the French Treasury and €990 million from the French Development Agency (AFD).
The agreements were signed during the minister’s meeting with France’s Minister of the Economy and Finance, Bruno Le Maire; and Rémy Rioux, the Chief Executive Officer of the Agence Française de Développement (AFD), alongside their accompanying delegation, to Egypt.
The new cooperation between the Arab Republic of Egypt and France for the period from 2021/2026.
The financing agreement falls under the framework of strengthening cooperation and bilateral economic relations between the two countries.
Al-Mashat said that the newly signed agreements reflect the strong relations between Egypt and France in supporting national development plans in many fields, including transportation, as France has contributed to the execution of Cairo Metro Line 1.
During the delegation’s visit, the development financing package agreements were signed to support several sectors, with transportation a main focus with the largest split amounting to €1.37 billion out of the €1.76 billion deal.
Egypt signed a project to supply 55 trains for Cairo Metro Line 1 with a development financing of €776 million that will go to the National Authority for Tunnels (NAT) provided by the French Treasury.
The agreement is in support of Egypt’s plans to develop the transportation sector, enhance sustainable infrastructure, and improve the services for the people.
From the AFD, financing will be provided to the rehabilitation of the El Mansoura – Damietta railway line with a value of €95 million; the rehabilitation of the Abou Qir metro with a value of €250 million; the Aswan, Toshka, and Wadi Halfa Railway Construction project; and the Al- Rubiky - 10th of Ramadan - Belbeis Railway Line with a value of €250 million.
The two also signed an agreement worth €50 million to launch a regional control center in Alexandria for the Ministry of Electricity and Renewable Energy.
Adevelopment financing agreement worth €52 million to implement a sewage treatment plant in Helwan, €68 million to implement a sewage treatment plant in East Alexandria, €50 million to implement the third phase of the Gabal Al Asfar Wastewater Treatment Plant, and €68 million to implement a wholesale market in Alexandria from which the Ministry of Supply and Internal Trade will benefit, were also signed.
Al-Mashat explained that the development financing provided by the aforementioned agreements is considered soft financing, characterized by long grace and reimbursement periods of up to 25 years, providing the state with the necessary time to implement projects that directly benefit the people, and then pay back under easier conditions.
The Minister pointed out that the package signed was worth €1.7 billion. There were two agreements signed; the first to implement the Universal Health Insurance System (UHIS) worth €150 million, and the second to implement a French University project in Egypt worth €12 million.
