Egypt- Electricity and Green Growth Support Program (EGGSP) - Phase I


Project Summary

Approval Date 17 Jun 2020
Signature Date 08 Jul 2020
Planned Completion Date 31 Dec 2020
Last Disbursement Planned Date 30 Jun 2022
Sovereign / Non-Sovereign Sovereign
Sector Power
DAC Sector Code 23630
Commitment U.A 185,192,806.29
Status Approved

Project General Description

The proposal and recommendation for an ADB sovereign loan of two hundred and twenty-five million Euros (EUR 225million) to the Arab Republic of Egypt is to finance the first phase of the Electricity and Green Growth Support Program (EGGSP). The EGGSP is designed as a programmatic series of two consecutive Sector Budget Support (SBS) operations over the financial years (FY)2019/20–2020/21 for a total indicative financing package of EUR 450 million.

Project Objectives

The main goal of the program is to promote a sustainable, competitive and diversified electricity sector for ensuring security of supply and supporting climate change mitigation and green growth.The expected outcomes of the program are: i) rationalization of the electricity tariff; ii) enhanced financial sustainability of the electricity sector; iii) improved corporate governance and competitiveness of the key electricity sector institutions; iv) enhanced security of energy supply through promotion of renewable energy and energy efficiencyfor fostering climate change mitigation and green growth; and v) stronger engagement of the private sectorfor better service delivery.

Beneficiaries

The EGGSP will benefit the population of Egypt, particularly the most vulnerable, because of the increased social allocations, including for coping with COVID-19,using the fiscal space that will be created by the reforms supported by the program. Furthermore, with near universal access to electricity in Egypt, the population will benefit from better energy service delivery and reliability. Promoting energy efficiency through the EGGSP will not only help the country make better use of its natural resources, but also help consumers reduce their expenditures on energy. Industries, including SMEs, should also benefit from the increased competitiveness in the energy sector that should help them improve their comparative advantages. The Program will benefit the Ministry of Electricity and Renewable Energy (MoERE) and the public power utility (EEHC&EETC), NREA and Egypt ERA with improved financial positions, better governance and higher operational efficiencies.

Participating Organization

Funding
African Development Bank

Information

IATI identifier 46002-P-EG-FA0-005
Last Update 19 Oct 2020

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Contact Details

Name EL-ASKARI Khaled Mohamed Samir
Email k.elaskari@afdb.org

Geographic Location

Country Egypt