The Ministry of Planning, Economic Development and International Cooperation announced that Egypt and Germany signed soft financing, debt swap, grants and technical cooperation agreements worth 294.5 million euros, equivalent to 16 billion pounds, during joint governmental negotiations in the German capital, Berlin.
This came during the conclusion of the current year’s round of governmental negotiations, between the Arab Republic of Egypt and the Federal Republic of Germany, which was held in the German capital, Berlin, headed by Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Reem Al-Abali Radovan. The Federal Minister for Economic Cooperation and Development of Germany, with the participation of many representatives of national authorities.
The agreements that were signed are divided into 171.5 million euros, concessional financing agreements, debt swaps, and grants for many projects in the fields of renewable energy within the “Novi” program. Solid waste management and improving the investment environment, in addition to the Egyptian-German negotiations protocol for the current year, which includes soft financing and technical support worth 123 million euros for the coming period. Many levels, whether with regard to new negotiations or the signing of a number of executive agreements for various development projects, as well as debt swaps.
She indicated that today we are witnessing a new episode of fruitful cooperation between the Arab Republic of Egypt and the friendly state of Germany, to strengthen the economic partnership in cooperation with national and German authorities represented by the German International Cooperation Agency (GIZ) and the German Construction Bank (KFW), in a way that achieves development priorities in Egypt, and supports the government’s efforts to empower the private sector and stimulate foreign direct investments, And expanding innovative financing mechanisms with development partners.
Regarding the details of the agreements signed between the Egyptian and German sides, Dr. Rania Al-Mashat witnessed the signing of a new tranche of the Egyptian-German debt swap for development worth 50 million euros, between the Central Bank of Egypt, the Ministry of Electricity and Renewable Energy, the Egyptian Electricity Transmission Company, and the German Construction Bank, for a project to connect the ACWA Power stations (1) and (2) to the national grid to discharge wind energy amounting to 1,100 megawatts, as the agreement contributes to alleviating the burden of external debt and exchanging financial obligations for local investments in the fields of infrastructure and clean energy.
Within the framework of implementing the connection of the ACWA Power stations (1) and (2) to the national grid to discharge wind energy amounting to 1,100 megawatts, a soft financing agreement and two complementary grants worth 86 million euros were signed between the national and German authorities, at a rate of (54 million (Euro soft financing and two grants worth 32 million euros).
These agreements aim to finance the work of connecting electricity networks to the wind stations in Ras Gharib and Jebel El-Zeit, as part of the plan to expand renewable energy projects, reduce dependence on fossil fuels and reduce carbon emissions, in addition to supporting the capabilities of the national electricity grid to absorb the increasing capacity of renewable energy and transform it into a smart and more flexible network, which contributes to the implementation of nationally determined contributions and the implementation of the national strategy for sustainable energy. 2035.
In another context, the Minister of Planning, Economic Development and International Cooperation witnessed the signing of the grant agreement to finance the “Risk Management Mechanisms – Phase Two” project. With a total amount of 15 million euros between the Central Bank of Egypt, the Credit Risk Guarantee Company (CGC) and the German Construction Bank, the financing contributes to strengthening credit guarantee mechanisms, and aims to support the private sector and small and medium-sized companies, and facilitate their access to financing, by reducing the risks associated with financing, within the framework of broader efforts to “improve the investment and financing environment.” In Egypt. Dr. Rania Al-Mashat witnessed the signing of the grant agreement to finance the “Solid Waste Management – Phase Three” project. With a total amount of 20 million euros between the Central Bank of Egypt, the Ministry of Environment (as an implementing agency for the project) and the German Construction Bank, the National Solid Waste Management Program aims to enhance sustainable protection efforts for the environment, protect natural resources and reduce the health risks of waste to citizens, while specifically targeting the establishment and implementation of effective policies, legislation and institutional structures for waste management at the national, local and governorate levels in Egypt, coupled with the implementation of infrastructure in the project areas.
As witnessed. The Minister of Planning, Economic Development and International Cooperation, the grant agreement submitted by the German Construction Bank in the amount of 570 thousand euros to contribute to the project to support energy efficiency and digitization of distribution networks.
In conclusion, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and her German counterpart, signed the minutes of negotiations, which includes a package of soft development financing and grants for technical cooperation worth 123 million euros for the period from 2025. /2028.
The new allocations within the framework of the Egyptian-German partnership aim to finance many projects in the fields of climate, energy, just transition, housing, infrastructure, sustainable economic development, training and employment, as well as education and technical education, the fields of immigration, land reclamation, and scientific research, which reflects the diversity of Egyptian-German relations, and strengthening them within the framework of national priorities.
