German Chancellor Angela Merkel, left, and President of Egypt Mohammed Morsi, right, shake hands after a joint press conference at the chancellery in Berlin, Germany (Photo: AP)
Egypt has signed a financial and technical cooperation agreement with Germany worth 172.6 million euros, state-owned news agency MENA reported on Monday.
Under the terms of the agreement, 165 million euros will be allocated to financing development projects, according to Planning Minister Ashraf El-Araby, who signed the agreement on behalf of Egypt at the German embassy in Cairo on Sunday.
The projects include an 80 million euro initiative to curb pollution emitted by thermal power plants in Egypt, and a 10 million euro improvement plan targeting drinking water supply and sanitation facilities, according to the minister.
As for the 7.7 million euros in financial aid, 4.17 million euros were committed to bolstering the private sector, while Germany committed 1 million euros to promoting women's rights in Egypt.
Development projects planned between the two countries were put on hold in December 2012 by Germany, due to a wave of political unrest in Egypt sparked by a referendum for the first post-revolution constitution.
During President Morsi's visit to Berlin in January, German Chancellor Angela Merkel stressed that German aid was conditional upon political inclusivity and democracy in Egypt.
Morsi was forced to cut short his visit at the time, due to spiraling violence in three Suez Canal cities and calls by the opposition for a national dialogue.