Egypt and the African Development Bank (AfDB) have signed a $170m agreement for the second phase of the Private Sector Development and Economic Diversification Support Program (PSD-EDSP II) to support the state budget and advance structural reforms.
The Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, and AfDB Country Manager Abdourahmane Diaw signed the agreement on Monday. The deal includes an additional $400,000 (EGP 19m) grant to enhance environmental sustainability at the Abu Rawash Wastewater Treatment Plant.
The signing ceremony was attended by Deputy Minister of Finance Yasser Sobhi and Deputy Minister of Housing Sayed Ismail. The Ministry of Planning, Economic Development and International Cooperation stated that the agreement forms part of efforts to coordinate with national entities and maximise relations with multilateral partners to implement the National Structural Reform Program.
Al-Mashat said the agreement is part of broader government efforts to mobilise concessional financing, expand fiscal space for human development programs, and advance structural reforms. She noted that AfDB’s private-sector-directed financing operations in 2025 were three times higher than government operations.
“This underscores Egypt’s openness and readiness for new partnerships and foreign investments that can drive innovation, sustainable growth, and long-term development,” Al-Mashat said.
The PSD-EDSP II follows the first phase of the program, which the House of Representatives approved in December 2024 with a value of $131m.
Regarding the Abu Rawash Wastewater Treatment Plant, one of the world’s largest, Al-Mashat emphasised that the grant aims to improve operational efficiency. This follows an agreement signed in May to finance the plant’s fourth phase, which seeks to increase treatment capacity from 1.6m cubic metres per day to 2m cubic metres per day.
The project is expected to benefit approximately 8.6m residents in the Giza Governorate by providing water suitable for agriculture and protecting local ecosystems.
The ministry previously announced that concessional financing to support the state budget between 2023 and 2026 amounts to approximately $9.5bn. These funds are intended to support macroeconomic stability, improve the investment climate, and stimulate Egypt’s transition to a green economy.
