|Approval Date||16 Jun 2021|
|Planned Completion Date||31 Dec 2022|
|Last Disbursement Planned Date||31 Dec 2022|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||23630|
The present intervention concerns the second phase of the Electricity and Green Growth Support Programme (EGGSP II). It will support policy actions to further strengthen the sustainability and competitiveness of the electricity sector. EGGSP will support the government in maintaining the reform momentum to limit the deterioration of macroeconomic balances and create additional fiscal space that enables it to expand social spending, especially on health for combating COVID-19, and deploy further protection measures to alleviate poverty and socioeconomic hardship. Specifically, the program will support enhancing the resilience of the power sector and deepening private sector participation for fulfilling the interconnected goals of the country’s energy strategy for ensuring security of energy supply through enhanced sustainability, governance and competition. EGGSP comprises two components that have been selected based on the current priorities for the next steps in the electricity sector reform agenda. EGGSP II retains the same two components of EGGSP I given that they remain relevant to the priorities for the current stage of the electricity sector reform agenda. The two components complement each other whereby the first component aims to improve the financial sustainability and competitiveness of the electricity sector, which is among the prerequisites for attracting more private investment in clean energy and energy efficiency for promoting climate change mitigation, green and sustainable growth as per the objective of the second program component. Its implementation is expected to contribute to Egypt’s aspirations for becoming a regional energy hub by improving the security of energy supply and enhancing sector competitiveness.
The purpose of the EGGSP is to support the reforms in two main critical areas, namely: i) restructuring the electricity sector for enhancing its financial sustainability and improving its governance and competitiveness; and ii) promoting clean energy and energy efficiency for improving the energy mix, addressing climate change mitigation and fostering green growth.
Like the first phase, 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. EGGSP will benefit the GoE by supporting the continuation and deepening of the country’s comprehensive economic reform program for promoting sustainable development and green growth. 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
GOVERNMENT OF EGYPT
|Last Update||29 Jul 2021|
|Name||EL-ASKARI Khaled Mohamed Samir|