File Photo: Second metro line. Al-Ahram
The European Bank for Reconstruction and Development (EBRD) announced that it is considering directing a sovereign loan worth €250 million to Egypt’s government as a fund to modernise and rehabilitate Cairo’s Metro line 2.
According to its website, the EBRD declared that this loan comes as a part of an inclusive investment package that amounts to €550 million that is expected to be jointly financed by the European Investment Bank and Egypt’s government.
The modernisation and rehabilitation project will be carried out through Egypt’s National Authority for Tunnels — a transport ministry affiliate — while the Egyptian Company for Metro Management and Operation will manage the operation process.
The EBRD elaborated that the project is in line with the bank’s strategy for Egypt that targets improving the quality and the sustainability of the public transport sector in the country by enhancing partnerships with the private sector, in addition to turning the country’s economy into a green economy.
The project is also expected to facilitate transitioning from individual transportation to a sustainable and green public transportation network, according to the bank.
The EBRD is currently adopting the Green Economy Transition (GET) (2021-2025) approach to help countries where it operates to build green, low carbon, and resilient economies.
Through the new GET approach, the EBRD will increase green financing to more than 50 percent of its annual business amount by 2025, with the key aim to reduce net annual green house gas emission by at least 25 million tonnes over the course of the next five years.
The GET approach also takes into account the COVID‐19 pandemic and its severe impacts, highlighting areas of opportunity to support a green recovery.
It builds on the EBRD’s long track record of financing green investments, as the bank has dedicated €36 billion in green investments to date and financed over 2,000 green projects, which are expected to cut 104 million tonnes of carbon emissions annually.
In his recorded speech addressing Egypt’s first International Cooperation Forum (EGYPT-ICF 2021) — which concluded on Thursday — President Abdel-Fattah El-Sisi stressed that green recovery has become a pressing necessity and a top priority for world governments currently.
“In the present time, humanity is passing through its most difficult test in a long time, as it is facing numerous challenges represented in the repercussions of the coronavirus pandemic and the negative impact of climate change,” said El-Sisi.
He also affirmed that the environmental factor was deemed a fundamental pillar in all development sectors in the country to overcome the impact of climate change, preserve natural resources, and move towards comprehensive and sustainable development, thus safeguarding the rights of the coming generations.