EBRD and ALEXBANK supports energy efficiency in Egypt
US$ 30 million financing package to boost energy-efficient and renewable energy investments
AA – The EBRD and the European Investment Bank (EIB) are planning to support energy-efficient and renewable energy investment in Egypt through a financing package to ALEXBANK in the amount of up to US$ 30 million under the Green Economy Financing Facility (GEFF) for Egypt. The EBRD is providing a financing facility of up to US$ 15 million to ALEXBANK for on-lending to private companies for energy-efficiency and renewable energy projects. The EIB is expected to join the facility with an additional US$ 15 million in financing at a later stage and to team up with EBRD to further strengthen sustainable energy measures in Egypt.
The finance line is the third extended under GEFF Egypt, a comprehensive programme for sustainable energy investment through financial institutions, supported by a €23.3 million grant provided by the European Union Neighbourhood Investment Facility .
Comprehensive technical assistance will provide support to ALEXBANK in the design of business development tools and the successful implementation of the energy-efficiency and small-scale renewable energy facility.
EBRD President Suma Chakrabarti said: “We are very pleased to further support energy efficiency in Egypt with this Financing Package to ALEXBANK. The agreement signed today will reinforce the role of the private sector in climate investment, reducing emissions and building a resilient environment.”
Dante Campioni, Managing Director and CEO of ALEXBANK, said: “This agreement with the EBRD, supported by funds from the European Union Neighbourhood Investment Facility, comes within the framework of ALEXBANK’s strategy. It aims to support efficient and environmentally sustainable investments by providing attractive funding solutions, coupled with training and capacity-building, to foster the implementation of projects in this vital area.”
Referring to the effective contribution of renewable energy projects in reducing the pressure on, and consumption of, traditional sources of energy, Mr Campioni added: “Through this initiative we aim to help save energy and reduce harmful emissions in line with the EBRD’s Green Economy Transition approach and with ALEXBANK’s strategy to favour sustainable and environmentally friendly development of the Egyptian economy.”
Ambassador Ivan Surkoš, commented: “The European Union is very satisfied with its dynamic partnership with Egypt in the field of sustainable energy. Through the Green Economy Financing Facility (GEFF) Egypt, we have provided €23 million in grants to help dismantle barriers that the private sector faces and that prevent financial institutions, strategic investors and project managers from operating actively and efficiently in financing sustainable energy projects. With today’s signing ceremony of this fund agreement with ALEXBANK we are glad to see that our support through the GEFF is being translated into concrete actions on the ground.”
Following a pilot project with NBE in December 2014, the GEFF framework for Egypt was finally launched in December 2016 and was the first EBRD credit line fully dedicated to energy efficiency and renewable energy investment in Egypt.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested over €3 billion in 66 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The Bank has also provided technical assistance to more than 600 small and medium-sized local enterprises. The EBRD has opened a second office in Egypt, in Alexandria, in October 2017, underscoring its commitment to reaching out to the country’s regions. The Alexandria team will be working primarily on support for small businesses.
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