>@Shimaa Ahmed/EIB
©Shimaa Ahmed/EIB

The instruments and prospects of sustainable financing to water projects is the topic of a seminar to be held tomorrow in the context of Cairo Water Week. Organised by the European Investment Bank (EIB) in partnership with the Delegation of the European Union to Egypt, the French Development Agency (AFD), and the German Development Bank (KfW). The seminar will shed light on the role of Team Europe in supporting water sector in Egypt.

H.E. Mohamed Abdel Aati, Minister of Water Resources and Irrigation, H.E. Christian Berger, EU ambassador to Egypt and Flavia Palanza, EIB Director of Lending Operations in EU Neighbouring Countries will inaugurate the event.

During the half-day seminar, representatives of EU financial institutions and development partners will discuss financing instruments to the sub-sectors of water in light of the Egyptian National Water Resources Plan (2017-2037).

H.E the minister of International Cooperation will make concluding remarks reflecting on the ongoing cooperation between the ministry and European financial institutions.

The seminar will start tomorrow 26 October at 09h30 in the venue of the Cairo Water Week in hybrid format. Online registration for virtual presence is available (Click here to register).

Background information

EIB support to water sector

Water is the source of life, but also the resource most affected by climate change[1]. An increased frequency of extreme weather severely affects the availability and quality of freshwater resources, causing water-related natural disasters.

As the largest lender to the global water sector to date, with more than EUR 66 bn for over 1400 projects, the EIB is making water security and climate change adaptation a priority. The EIB lends to public or private utility companies, national or local authorities or directly for project finance deals. It can lend up to 50% of investment costs for individual projects. On average, its lending makes up 30% of the investment cost of water projects.

The EIB supports investment that sustainably manages limited global resources. Financed EIB projects increases secure access to water resources, ensure reliable provision of sustainable and affordable water and wastewater services promote resource efficiency (energy, chemicals, and water).

In Egypt, the Bank provided financing of EUR 1bn to support 13 projects in the water and wastewater sector. The bank’s support comes in the framework of the EU development policy to achieve the water and sanitation targets of the United Nations Millennium Development Goals.

The EC-grant funded MEHSIP helped to identify many projects in the sector and to conduct needed studies for the implementation. Also EIB-ERI Fund and the CAMENA provided needed grants for technical assistance services. 

The EIB supports the Egyptian government’s objectives under the National Strategy for Water Supply and Sanitation (2008-2037), the National Rural Sanitation Programme (NRSP), and the National Rural Sanitation Strategy 2017-2037, which expands the planning in the area of Integrated Rural Sanitation for Egypt up to 2037.

Three projects are considered priorities for the EIB’s communications. The Integrated Water Services Programme I and II involve financing many projects in the Nile Delta as well as Upper Egypt e.g. news. The project was identified under MEHSIP and benefits from TA financed by the EC. The impact of the project includes improving access to clean drinking water and safe sanitation services and reducing water resources pollution. The programme also will support achieving financial stability and overall sustainability of HCWW and its affiliated companies. EIB is the key financier of the programme, however KfW manages the financing under MRI.

The Kafr Elsheikh Waste Water Treatment project is another priority project for communications. It benefits from a TA. It will improve health standards for residents, the quality of irrigation water, as well as the environmental quality of the Nile, Lake Burullus, and the Mediterranean Sea. Indirect benefits include an expected increase in the volume and quality of fish in Lake Burullus (70% of the country's fishing industry), safer agriculture production, improved conditions for tourism on the Mediterranean coast, and job creation. The project will increase the wastewater service coverage by 22%, reduce pollution of the River Nile-Rosetta and Lake Burullus, and contribute to climate change mitigation by reducing GHG emissions by 30.000 CO2e/year.

The Alexandria West WWTP expansion project will contribute towards efficient and sustainable water resources management. It is expected to have substantial environmental and social benefits, as it will reduce the levels of pollution in Lake Maryout, El Mex Bay and the Mediterranean Sea. The project received MEHSIP support and EC grants for preparation and implementation.

Moreover, the Bank finances more projects in the sector such as the Fayoum Wastewater Expansion, Kitchener drain, and Alexandria West Waste Water Treatment Plant extension (see list of projects below).


[1] By 2025, 800 million people will have to cope with water scarcity.

List of financed projects

Name

Signature Date

Signed Amount

Description

KITCHENER DRAIN

21/07/2020

€19,000,000

The project concerns the depollution of the Kitchener Drain in the Nile Delta Region in Egypt through investments in domestic wastewater collection and treatment, solid waste management and rehabilitation of the drain infrastructure.

ALEXANDRIA WEST WASTE WATER TREATMENT PLANT EXT

31/12/2019

€120,000,000

The project concerns the capacity increase and treatment level upgrade of the Alexandria West Wastewater Treatment Plant (WWTP).

KITCHENER DRAIN

18/12/2018

€213,900,000

The project concerns the depollution of the Kitchener Drain in the Nile Delta Region in Egypt through investments in domestic wastewater collection and treatment, solid waste management and rehabilitation of the drain infrastructure.

KAFR EL SHEIKH WASTE WATER TREATMENT (EGYPT)

02/10/2018

€16,876,000

The project involves (i) the construction of 3 new Waste Water Treatment Plants (WWTPs); (ii) the expansion of 3 existing WWTPs; and (iii) the laying of 697 km of sewers with the installation of 52 pump stations in the the Kafr El Sheikh Governorate. The provision of rural sanitation services will contribute to improving health standards of KES residents and the environmental quality of the Nile, Lake Burullus, and the Mediterranean Sea.

KAFR EL SHEIKH WASTE WATER TREATMENT (EGYPT)

02/10/2018

€10,373,000

The project involves (i) the construction of 3 new Waste Water Treatment Plants (WWTPs); (ii) the expansion of 3 existing WWTPs; and (iii) the laying of 697 km of sewers with the installation of 52 pump stations in the the Kafr El Sheikh Governorate. The provision of rural sanitation services will contribute to improving health standards of KES residents and the environmental quality of the Nile, Lake Burullus, and the Mediterranean Sea.

FAYOUM WASTEWATER EXPANSION PROJECT

25/07/2018

€126,000,000

Investment programme for the construction and expansion of wastewater collection and treatment facilities in the vicinity of Lake Qarun (Fayoum Governorate). The programme will be implemented in two phases.

KAFR EL SHEIKH WASTE WATER TREATMENT (EGYPT)

05/06/2014

€77,000,000

The project involves (i) the construction of 3 new Waste Water Treatment Plants (WWTPs); (ii) the expansion of 3 existing WWTPs; and (iii) the laying of 697 km of sewers with the installation of 52 pump stations in the the Kafr El Sheikh Governorate. The provision of rural sanitation services will contribute to improving health standards of KES residents and the environmental quality of the Nile, Lake Burullus, and the Mediterranean Sea.

IWSP II (UPPER EGYPT)

17/12/2013

€57,000,000

Construction and rehabilitation of water supply and wastewater infrastructure in the Upper Egypt governorates of Qena, Sohag, Assiut and Minya

IWSP

30/09/2009

€70,000,000

Priority water and wastewater investments in 4 governorates in the Nile delta

ABU RAWASH WASTEWATER

22/12/2003

€55,000,000

EUROMED II

ALEXANDRIA WASTEWATER PROJECT

21/04/1999

€30,000,000

EUROMED

NAGA HAMMADI DAM

09/06/1998

€75,000,000

Replacement of an infrastructure built on the Nile 70 years ago reaching the end of its lifetime. The new Naga Hammadi Dam provides water to irrigate 240 000 ha. The water levels guaranteed by the new dam ensures a continued supply to the area.

CAIRO WASTEWATER II

16/07/1996

€35,000,000

OFF PROTOCOL ENVIRONMENT

GABAL ALASFAR WWTP II

16/07/1996

€55,000,000

Construction of a wastewater treatment plant and extension of the sewerage system in Cairo.

CAIRO WASTEWATER

15/12/1992

€45,000,000

THIRD FINANCIAL PROTOCOL

NUBARIYA IRRIGATION

26/11/1989

€35,000,000

 

Total

 

€1,040,149,000