Egypt, Germany sign 12 development finance deals worth €197m in H1 of 2021: Al-Mashat

Daily News Egypt
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Egypt’s Minister of International Cooperation Rania Al-Mashat has announced that 12 development financing agreements worth €197m were signed within the framework of the joint cooperation strategy with Germany, during the first half (H1) of this year. 

The agreements aim to support Egypt’s development vision and implement a number of projects in various sectors, including energy, vocational training, enhancing partnerships with the private sector, and empowering women.

Al-Mashat stated that two financial and technical cooperation agreements were signed with the German government, securing €57.5m grants to finance projects in the sectors of energy efficiency, renewable energy, technical education, vocational training, and innovation to the enhance private sector, administrative reform, water support, and sanitation.

Al-Mashat added that 10 executive contracts were signed with the German Corporation for International Cooperation (GIZ) in the form of grants; these include the amended contract of the Youth against Sexual Harassment (YASH) project worth €4m for the Ministry of Youth and Sport;  the contract for the development of Micro, Small and Medium-sized Enterprises (MSMEs) project worth €14m directed to the Ministry of Trade and Industry; as well as a contract worth €8m for building institutional capacities in public administration by integrating best international practices.

Another contract was related with the second phase of the employment support project worth €14.5m and the Enhancement of the Egyptian Dual System (EEDS) project worth €14.9m both provided for the Ministry of Education and Technical Education. It also covered the National Solid Waste Management Programme (NSWMP) worth €6m for the Ministry of Environment; and the Agricultural Innovation Project (AIP) worth €7m for the Ministry of Agriculture and Land Reclamation.

In addition, a contract for the third phase Employment Promotion Project (EPP) worth €16m was signed for the Ministry of Education and Technical Education as well. Furthermore, an amended contract for the project supporting SMEs in obtaining financial services worth €10m allocated to the Financial Regulatory Authority (FRA), and a contract for a capacity-building project through developing infrastructure in areas affected by illegal immigration, with a value of €3.5m for the Ministry of Housing, Utilities and Urban Communities were signed in the H1 of 2021; highlighting both countries’ eagerness to achieve the local and global sustainability targets. 

Al-Mashat pointed out that the Ministry is working to strengthen economic relations with multilateral and bilateral development partners through the principles of Economic Diplomacy, commending cooperation with Germany that fosters national development efforts in various sectors through development financing agreements and debt exchange. Coordination is taking place with Germany to make available the third tranche of the second phase during the next year, after communicating and coordinating with relevant authorities in Egypt and receiving proposals on priority projects.

It is worth noting that the ongoing development cooperation portfolio with Germany amounts to €1.7bn, through which 30 projects were financed in the form of funds, technical support grants, and financial contributions, benefiting many development sectors.

Within the framework of the debt swap program with Germany, the first phase, worth €70m was completed, during which several projects were implemented in the field of school feeding, improving the quality of education, rehabilitating hydroelectric stations, developing Assiut Barrages, as well as projects to improve drinking water and sanitation services.

The first tranche of the second phase of the program, worth EUR 10 m, was provided for the Ministry of Education and Technical Education for the Education Quality Support Project (Phase II). Furthermore, the second tranche of the second phase of the program, worth €80m, was allocated to the implementation of several projects: the “Investing in Human Capital in Rural Upper Egypt” project for the benefit of the World Food Program (WFP) and in cooperation with the Ministry of Education and Technical Education; and the Water Management program aiming to improve drinking water and sanitation services in the governorates of Qena, Assiut, Minya, and Sohag; and finally, the new comprehensive technical education and vocational training initiative.

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