In a joint statement, Egypt’s Minister of Finance, Ahmed Kojak, and Minister of Environment, Dr. Yasmin Fouad, expressed their commitment to promoting private sector investments in waste-to-energy projects. This initiative is part of a comprehensive economic vision designed to increase the role and contributions of the private sector in the economy, particularly as Egypt seeks to attract foreign direct investment, especially in the transition to a green economy.
Encouraging Competitive Mechanisms to Attract Investment
Minister Kojak emphasized that the government is focusing on competitive mechanisms to drive more investments into waste-to-energy projects. These mechanisms include expanding public-private partnership models and leveraging Egypt’s public procurement law to facilitate investments. This strategic shift is aimed at substituting natural gas with waste as a resource for electricity generation, allowing natural gas to be allocated to higher-value projects.
Additionally, Kojak highlighted the importance of close coordination between the Ministries of Finance and Environment to maximize the benefits from these initiatives. The two ministries are working together to set priorities, outline effective execution plans, and secure financial resources necessary for the successful implementation of these projects.
Urgent Need to Revise Tariffs for Waste-to-Energy Projects
Dr. Yasmin Fouad, Minister of Environment, pointed out that revising the tariffs for waste-to-energy projects is essential to attract more private sector investment. Adjusting these tariffs would provide companies with greater incentives, encouraging them to expand their operations and attract new investors.
Fouad also explained that three types of waste are converted into energy: organic waste, sewage sludge, and landfill gases. This process not only helps reduce the volume of waste in landfills but also minimizes the land area needed for creating new landfills. The conversion process requires only a single landfill cell, which significantly reduces environmental impacts, particularly in the provinces where waste accumulation can cause harm.
A Strategic Move for Sustainable Investment
The government is actively working to incentivize private investments in the waste-to-energy sector by offering enhanced tariffs and additional incentives. In fact, land has already been allocated for the establishment of these projects in eight Egyptian governorates, with plans for gradual implementation over the next three to four years.
This shift aligns with Egypt’s broader efforts to fulfill its international commitments and achieve its nationally determined contributions (NDCs) in climate action. Additionally, waste-to-energy projects support the increase of foreign investments in waste management, recycling, and transportation sectors.
In conclusion, both Ministers reaffirmed the government’s dedication to supporting sustainable investment in waste-to-energy, underlining the long-term environmental and economic benefits for Egypt. The revised tariff structure is just one piece of a larger strategy to promote green investments, ensure energy security, and advance Egypt’s commitment to a cleaner, greener future.
