Egypt’s parliament has approved an agreement with the European Bank for Reconstruction and Development (EBRD) to get an additional $50 million for a program to improve the efficiency of energy use by the Suez Oil Processing Company.
The agreement was signed in November and compliments a previous $200 million deal signed in 2018 between the EBRD and the International Cooperation Ministry for the same program.
The funds will be used to improve the oil and gas sector’s performance by enhancing energy efficiency and ensuring the effectiveness of the company’s petroleum refinery, the ministry said in a statement.
International Cooperation Minister Rania Al-Mashat illustrated that the agreement supports Egypt’s efforts to be a regional hub for energy, creates new job opportunities, provides clean energy and contributes to achieving four sustainable development goals.
Head of parliament’s energy and environment committee Talaat El-Swaidy has said that parliament approved the agreement because of its importance in boosting the energy efficiency of the company, which contributes to providing essential needs in the Egyptian market regarding oil and petroleum products.
The total EBRD projects in Egypt have reached 151 projects worth €6.291 million, 56 percent of which constitutes the private sector’s share, according to the international cooperation ministry. The ongoing portfolio of projects records €4,183 million, according to the EBRD.
Egypt’s GDP is expected to grow by 2.5 percent in the current FY2019/2020 and by 3 percent in FY2020/2021 on the back of the weak outlook in the tourism sector, disruptions in global value chains, weaker demand from trading partners, and the slowdown in foreign direct investment (FDI), according to the EBRD’s regional economic outlook report released in May.