The French Government authorized AFD’s intervention in Egypt in 2004. The Agency started project identifications in 2005. In April 2006, AFD and the Ministry of International Cooperation signed an Framework Agreement, approved by Presidential Decree and ratified by the Parliament; the agreement entered into force in February 2007. Photo © Ed Yourdon
The French Development Agency allocates a loan to Egypt to finance the first 20 MW public photovoltaic power plant connected to the electricity grid in Kom Ombo – Upper Egypt
In the course of its visit to Egypt on October 10th 2015, the French Prime Minister, Manuel Valls attended jointly with his Egyptian counterpart Cherif Ismaïl the signature of a loan agreement in the amount of EUR 40 M between the AFD and the Egyptian Ministry of Electricity and Renewable Energy. This signature is set in line with the project’s roadmap that was signed during last March’s Sharm el Sheikh Economic Conference.
A few weeks before the COP21 to be held, in Paris, in November, the AFD true to its mandate of sustainable development group, associated with the European Union, supports the Egyptian authorities in achieving the ambitious target of 20% renewable energy in the energy mix in 2022 by financing the construction project of the first solar power plant connected to the national grid. With an output of 20 MW, the plant will be built in Kom Ombo in Aswan Governorate, in Upper Egypt, and should be in operation in 2017. Beyond the infrastructure this project includes the implementation of a contract of operation and maintenance of the power plant for a period of 3 years by a private operator and a training program for the staff of the New and Renewable Energy Authority (NREA), the implementing agency. The AFD funding is supplemented by a donation from the European Union to delegate 800,000 euros AFD allocated to the project design (feasibility study of the project, technical support NREA).
This power plant will inject 40 gigawatt hours annually on the electricity grid nearly and reduce the carbon impact of electricity generation by 15,000 tons carbon dioxide equivalent per year.
AFD aims at dedicating 50% of its annual funding to projects which demonstrate a climate co-benefit. The loan agreement signed today is fully consistent with this overall strategy and complements an already substantial Egyptian portfolio of EUR 500 million dedicated to funding exemplary projects contribute to reducing the carbon impact of the economy, such as Cairo metro line 3, gas distribution project with EGAS, and a wind farm in the Gulf of Suez.
This project has been funded with support from the European Commission. This publication [communication] reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
The AFD and the Commercial International Bank sign a letter of interest for a total amount of EUR 80 million
In the course of its visit to Egypt on October 10th 2015, the French Prime Minister, Manuel Valls attended jointly with his Egyptian counterpart Cherif Ismaïl, the signature ceremony of a letter of interest for a total amount of 80 million euros, signed between the French Agency Group Development (AFD), represented by Jacques Moineville, AFD’s Deputy Chief executive office and the Commercial International Bank (CIB), represented by Mr Ame Youssef El Ganainy, CIB’s President of Global Customers relations.
Such funding couples, in the one hand, a credit facility of EUR 60 million provided by AFD to finance projects with climate’s benefits, particularly in the renewable energy sector and, in the other hand, a credit facility of EUR 20 million provided by Proparco, AFD’s subsidiary dedicated to private sector’s financing, in order to promote access to finance for small and medium enterprises (SMEs).
CIB and AFD’s Group have maintained for many years an active partnership, through various development programs, such as the industrial depollution program -EPAP-, in which CIB is a participating bank, or the SASME’s program, which aims to supporting agricultural SMEs, and whose grant agreement was also signed today.
Through such funding, the AFD’s Group and CIB want to encourage and promote private investment with environmental and/or climate benefits. The AFD’s credit facility should, in particular, help to catalyze financing from the banking sector, local and/or international, towards renewable energy projects led by the private sector. Thus, it supplements the AFD’s Group activities in supporting the development of renewable energies.
In addition, such funding is fully in line with the COP 21’s Agenda, whose one of the main issues focuses on the mobilization of private financing, in particular from banking institutions, to promote the fight against climate change.
Commercial International Bank was established in 1975. Commercial International Bank (CIB) is the leading private sector bank in Egypt, offering a broad range of financial products and services to its customers, which include enterprises of all sizes, institutions, households and high-net worth individuals. The Bank strives to provide clients with superior financial solutions to meet all of their financial needs. Having the strongest brand equity rightfully places CIB as the bank of choice for over 500 of Egypt’s largest corporations. Moreover, CIB shows tremendous upside potential within the bourgeoning Retail and SME Banking markets. Through its superior management, high operating standards, corporate governance best practices and premier training programs, CIB has succeeded in becoming the most profitable commercial bank operating in Egypt for more than 35 years.
On August 5, 2015, the AFD granted the Government of the Arab Republic of Egypt a sovereign concessional loan amounting to EUR 30M to improve the access to financing for agricultural producers and processors. This credit line will be complemented by a donation from the European Union amounting to EUR 22 million and a contribution from the Arab Republic of Egypt, aiming to strengthen and structure the agricultural sectors.