The European Commission is to grant Egypt 10 million euro ($13 million) to develop water and sanitation projects, the body said on Thursday.
The funds are the first tranche of a total 303 million euro ($392 million), according to a report from Italian news agency ANSA.
The new support will go towards improving the infrastructure needed to supply water, as well as technical assistance, financial planning and project management.
"Providing Egyptian citizens with universal access to drinking water supply and environmentally-friendly sanitation service was amongst the crucial demands for social justice made during the Arab Spring last year," EU Enlargement Commissioner Stefan Fule was quoted as saying.
"As a result, we have transformed it in one of the key priorities of our support to Egypt."