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Egypt to receive $1.5 billion in housing, sanitation project funding from World Bank

World Bank to offer Egypt soft loans and grants worth $500 million in social housing projects and $1 billion for sanitation project covering 760 villages

Ahram Online, Tuesday 23 Sep 2014
Boys play on the bank of the river Nile at the outskirts of Giza governorate, Jan. 20, 2013 (Photo: Reuters)

The World Bank has agreed to offer Egypt $1.5 billion (LE 10.5 billion) in financing for social housing and sanitation for villages over a period of three years, housing, utilities and urban development minister Mostafa Madbouly announced in an official press release on Tuesday.

The agreement, concluded during a two-day visit by the minister to the United States, includes a soft loan and grants worth $500 million (LE3.5 billion) for social housing projects, to be disbursed in installments of $100-120 million (LE700 – 840 million) a year.

The sanitation project will cover 760 villages along the Rosetta branch of the Nile Delta and along the Al-Salam Canal, which runs from the East Delta through the Sinai peninsula, at a cost of $1 billion over three years, said the minister, without specifying when the first $150 million installment would be received. 

According to Madbouly, the World Bank has vowed to lead a group of donor institutions to grant additional funding for the project, which needs $2.5 billion (LE17.5 billion) to be completed.

In July, the World Bank approved a $300 million (LE2.1 billion) interest free loan to Egypt to fund micro and small enterprises (MSEs).

A month prior, the bank signed an $8.10 million (LE57 million) grant from the Global Environment Facility (GEF) for Egypt's Sustainable Persistent Organic Pollutants Management Project (POPs).

The World Bank's commitment to Egypt currently includes 25 projects for a total of US$4.9 billion (LE34.3 billion) as well as 43 trust fund grants worth US$190.2 million (LE1.3 billion) in the sectors of energy, transport, water and sanitation, agriculture, irrigation, health and education.

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