The National Bank of Egypt (NBE) — in its capacity as a financing agent — and the Agricultural Bank of Egypt (ABE) — in its capacity as a guarantor — signed a joint loan contract for the benefit of the General Authority for Reconstruction Projects and Agricultural Development with a value of EGP 3bn.
This is to provide the necessary funding for the implementation of the pilot phase of the modern irrigation system in the governorates of Beni Suef and Qaliubiya as an initial stage.
Yahya Aboul-Fotouh — Vice Chairperson of NBE — said that the bank believes in the importance of financing vital national projects and targeting the development of various economic sectors — including the agricultural sector — as well as providing financing opportunities for many agricultural projects in order to achieve sustainable development through advanced farming methods.
This aims to maximise the return and ensure optimal use of the state’s water resources. He added that this joint funding will directly contribute to developing and enhancing the efficiency of the irrigation system in Egypt.
For his part, Sami Abdel Sadil — Vice Chairperson of ABE — stressed the bank’s keenness on supporting the state’s efforts to achieve sustainable development in the agricultural sector through integrated financing solutions that target developing it.
He explained that this loan aims to help the owners of agricultural lands located in the valley and the delta to provide financing for rehabilitating and equipping irrigators and switching to the use of modern irrigation networks in cooperation with the Ministries of Agriculture and Water Resources and Irrigation, adding that this step will contribute to developing the agricultural sector and enhancing productivity.
Ayman Al-Shamy — Head of the Corporate Finance Sector at the NBE — said that this loan was arranged within the framework of the national initiative to develop irrigation and switch to modern irrigation methods to ensure high productivity rates of agricultural crops in addition to supporting the capacities of farmers benefiting from the initiative. He also praised the fruitful cooperation and harmony between the two banks.
Furthermore, he said that the loan aims to provide the necessary financing to implement the pilot phase of the modern irrigation system in Beni Suef and Qaliubiya with a total amount of EGP 3bn, distributed at EGP 2bn and EGP 1bn for each governorate, respectively.
This amount shall support farmers in the two governorates to help them shift from flood irrigation systems to modern irrigation systems as well as rehabilitating irrigators.
The loan will be repaid in 10 annual instalments, providing support to the agricultural sector.