The financial cooperation agreement includes a 32 million euro grant to support the inclusive technical education initiative by establishing 25 Egyptian Centres of Excellence (specialized centres and applied technology schools), with an initial focus on developing three sector-specific centres.
An additional 86 million euros, composed of a 54 million euro concessional loan and a 32 million euro grant, is allocated to fund the connection of ACWA Power 1 and ACWA Power 2 wind farms. This will enable the transmission of 1,100 MW of wind-generated power.
This falls under the energy pillar of Egypt’s Nexus of Water, Food, and Energy (NWFE) programme.
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat and German Ambassador to Egypt Frank Hartmann signed the agreement in the presence of Minister of Electricity and Renewable Energy Mahmoud Esmat.
A statement by the Ministry of Planning described the agreement as another step in reinforcing the strong partnership between Egypt and Germany in support of economic development efforts.
Moreover, Al-Mashat and the German ambassador signed a 21 million euro debt swap agreement between the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Holding Company, and the German Development Bank (KfW).
The agreement aims to enhance the supply of sustainable and renewable energy.
Al-Mashat stressed the importance of this debt swap agreement, which builds on cooperation that began in 2011 and has since enabled the implementation of numerous development projects.
She added that the Egypt-Germany debt swap programme is a practical application of global calls to restructure the international financial system.
According to the statement, the German ambassador expressed his country’s commitment to supporting Egypt with expertise and financing for its strategic future investments, particularly in renewable energy.
At the COP27 Climate Conference, Germany pledged 250 million euros to support the energy pillar of the NWFE platform, including 104 million euros through debt swaps.
In 2023, a 54 million euro agreement was signed to strengthen investments in Egypt’s electricity transmission network and connect two wind projects, Nuweis and Amunet Wind Farms in the Red Sea, to the national grid.
Work is underway to sign a second debt swap tranche worth 50 million euros under this programme.
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