|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|
|DAC Sector Code||23630|
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.
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.
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.
African Development Bank
|Last Update||19 Oct 2020|
|Name||EL-ASKARI Khaled Mohamed Samir|