EIB Vice-President Philippe de Fontaine Vive in Egypt to meet the Egyptian Prime Minister Ibrahim Mahlab and signs new loan (€70 m) on a key environmental project (EPAP III)
On Monday 22th December 2014, In the presence of H.E. Prime Minister Ibrahim Mahlab, H. E. Minister of Environment Khaled Fahmy and Philippe de Fontaine Vive, EIB Vice-President, signed a new loan agreement for an amount of €70 million to support the Egyptian Pollution Abatement Programme (EPAP III) considered as a priority programme for the Minister of Environment and the Egyptian Environmental Affairs Agency. The EIB is the lead financing institution notably in terms of volume among the core European development partners supporting this national programme.
The project will finance public and private industrial companies that will invest in pollution abatement technologies while assisting the industry in complying with environmental regulations. It aims to alleviate the environmental consequences of the rapid population growth, ambitious development and industrialization policies experienced by Egypt. EPAP III will establish sustainable mechanisms for environmental improvement of private and public industries and at enhancing technical capability of all relevant authorities and banks to handle industrial pollution providing preferential treatment to small and medium-size industrial enterprises.
The programme should significantly improve the reduction of pollution. Under the previous programme (EPAP II), 38 projects from 28 companies have been enabled.
At the signing ceremony the EIB Vice-President Philippe de Fontaine Vive said: “The reduction of pollution is crucial for Egypt. This is why we have decided to support public and private industries involved in a very positive environmental approach and procedures. Through this financing, we aim to promote the productivity and competitiveness of the Egyptian economy and to create jobs. We aim to contribute to the improvement of the daily life of the Egyptian people and to the building of a future for the younger generation.”
The project preparation has been undertaken jointly with EIB as the lead financing institution and includes support from the EU Neighbourhood Investment Facility, in the form of EUR 6m for technical assistance (TA) and EUR 4m direct investment grant (DIG). The programme is jointly financed by AFD, the German Development Cooperation through KfW, and the above mentioned European Union grants (EUR 10m). The Government of Egypt will further contribute to the project.
EIB, a key financial partner for Egypt
Despite political turmoil and economic contraction, over the last three years, the EIB have invested more than €800 m in Egypt, in support of projects in such varied areas as environments, energy, innovation, water supply and wastewater infrastructures, transport, urban development and small and medium-sized enterprises (SMEs). This year alone, mobilizing its available resources and skills in response to the economic and social challenges facing this country, €400 m has been invested in Egypt. Thus confirming the major role played by the EIB in this country as the leading international financier in the Mediterranean region.