Egypt’s Minister of International Cooperation Rania Al-Mashat signed on Tuesday an agreement with the Agence Française de Développement (AFD) for a grant worth €151 million allocated to the Energy Sector Budgetary Support Program.
The agreement is part of the ministry’s plan to form a multi-donor platform around a shared policy matrix to secure immediate funding from multilateral and bilateral development partners for budgetary support and assistance in mitigating the impact of the pandemic, the ministry said in a statement.
The agreement was signed by Minister Al-Mashat, the Ambassador of France in Egypt Stéphane Romatet, and AfD Country Director Fabio Grazi.
The agreement is expected to provide financing support to the energy sector according to the goals set out in the comprehensive Sustainable Energy Strategy 2035 adopted by the Egyptian government, which emphasises the importance of renewable energy.
The program targets two objectives, the first is to enhance financial sustainability, governance and operational efficiency of the electricity sector, while the second is to support clean energy and green growth, according to Al-Mashat.
It also provides three-year technical assistance to the Ministry of Electricity and Renewable Energy and its affiliated utilities, supporting reforms for a sustainable energy sector through capacity building, and laying assessment methodologies of direct and indirect socio-economic impact and regulations set by the Electricity Regulation Authority, Al-Mashat added.
The Minister of Electricity and Renewable Energy Mohamed Shaker said the agreement is important to help in taking major steps to reform the energy sector in Egypt.
“Signing this financing agreement for the electricity sector is good news for both France and Egypt, as it highlights our joint commitment to support our partnership in the energy sector. It also greatly serves efforts in the climate field, as the funding allows us to accompany Egypt on its journey to develop a variety of energy sources with low carbon emissions,” Ambassador Romatet said.
On the other hand, AFD’s Grazi stated that the new DPF to the electricity sector represents a key step in AFD’s commitment to support the transition towards a sustainable and efficient energy system in Egypt.
The current cooperation portfolio amounts to €826.3 million, aside from AFD’s management of EU grants to Egypt worth €153 million, according to the international cooperation ministry.