Egypt and EBRD Sign Cooperation Agreements to Boost Private Sector Engagement and Infrastructure Development

Mona Yousef

To bolster Egypt’s economic growth, the Ministry of Finance, the Ministry of Planning and the European Bank for Reconstruction and Development (EBRD) have signed important agreements aimed at expanding the role of the private sector in the country’s infrastructure and public service sectors.

The first agreement establishes the “Egypt Account”, a new fund with an initial capital of €10 million, designed to finance feasibility studies and consultancy fees for Public-Private Partnership (PPP) projects. This initiative will help expedite the preparation and execution of key infrastructure projects by significantly reducing the time required to obtain financing for feasibility studies—from one year to just two months. The account will also enable the concurrent study and launching of multiple PPP projects, accelerating the process of engagement with both local and international consultants.

The second agreement, signed between the Ministry of Planning and the EBRD, aims to formalize the framework for technical support from the Bank to the Egyptian government. This will involve capacity-building, institutional support, and guidance for the successful implementation and financing of future PPP projects in sectors such as transportation, healthcare, energy, water desalination, and other priority areas.

Enhancing Private Sector Involvement in National Development

Prime Minister Dr. Mostafa Madbouly, who attended the signing ceremony, highlighted that these agreements are a critical part of Egypt’s broader strategy to maximize private sector participation in its national infrastructure projects. He emphasized that both local and foreign private investment is essential to accelerating the delivery of public services, aligning with Egypt’s development priorities.

Ahmed Kouchouk, Minister of Finance, explained that the creation of the “Egypt Account” at EBRD would provide much-needed financing to stimulate private investment in vital infrastructure. The fund will expedite the preparation and tendering of several PPP projects, ensuring faster contracting timelines with both international and domestic consultants. Additionally, the funding process for feasibility studies will now be significantly more efficient, offering an accelerated path for project implementation.

Kouchouk expressed his gratitude for the collaboration between Egypt’s Central Unit for PPPs and the EBRD, which has been instrumental in bringing this initiative to fruition. He also pointed out that this initiative reflects Egypt’s ongoing efforts to expand the scope of PPPs, allowing for a more prominent role of the private sector in driving economic growth. The ultimate aim is to generate sustainable growth, focusing on productive and export-oriented activities that will enhance Egypt’s competitiveness in the global economy.

Strategic Sectoral Investments and Future Outlook

In 2024, Egypt signed ten new PPP projects, amounting to a total investment of EGP 19.8 billion across various sectors such as solid waste management, dry ports, wastewater treatment, electrical substations, technical education, and strategic goods storage. Furthermore, Kouchouk revealed that nine additional projects, with an investment value of approximately EGP 53.9 billion, are under tender. These include energy infrastructure, water desalination plants, sewage treatment, and vocational schools.

The government is also preparing to launch ten more projects valued at approximately EGP 37 billion, focusing on critical sectors such as electricity, industrial waste management, and water treatment. Kouchouk emphasized that PPP projects are essential for achieving broad-based economic growth and contributing to Egypt’s long-term sustainable development goals.

Renewed Partnership Between Egypt and EBRD

In a parallel development, Dr. Rania Al-Mashat, Minister of Planning and Economic Development, signed a Memorandum of Understanding (MoU) with Mark Davis, Regional Director for the Southern and Eastern Mediterranean region at EBRD. The MoU formalizes the technical assistance framework to help Egypt expand its PPP program, supporting institutional capacity building and the development of sustainable, innovative partnerships between the public and private sectors.

Minister Al-Mashat underscored that this agreement is part of Egypt’s broader economic diplomacy strategy. Since 2020, the Ministry has worked to deepen partnerships with international financial institutions and development banks to address the country’s development gaps. The goal is to leverage private sector expertise, technology, and financial resources to implement large-scale national projects.

Al-Mashat also noted that the EBRD has been a crucial partner in financing Egypt’s private sector growth. In 2024 alone, the EBRD invested €1.5 billion across 26 projects, with 98% of this funding directed toward the private sector. These investments span a range of industries, with a notable focus on green financing, making up 50% of the total amount.

The Minister added that the EBRD’s support also extends to the energy sector, where it has helped raise $3.2 billion in concessional financing for private sector renewable energy projects. She emphasized that these efforts are aligned with Egypt’s National Structural Reform Program, which aims to improve the business environment and further open up opportunities for private sector participation.

A Strong Track Record and Future Prospects

Since becoming an operational country for the EBRD in 2012, Egypt has received investments totaling €13.8 billion in 194 development projects, 80% of which have been directed to the private sector. These efforts have helped to position Egypt as one of the leading economies in the EBRD’s Southern and Eastern Mediterranean region, with the country ranking first in terms of EBRD operations in 2024 for the seventh consecutive year.

Al-Mashat also announced that Egypt is set to host the EBRD Annual Meeting in 2027, following approval by the Board of Governors. This development highlights Egypt’s strategic role in the bank, reinforcing its status as one of the bank’s founding members and one of the largest recipients of investments globally.

 

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