The House of Representatives approves funding worth 53 million euros to implement the smart energy project

Mary Nady

In its plenary session yesterday, the House of Representatives approved Presidential Resolution No. 24 of 2024 regarding the exchange of letters regarding financing the smart energy project within the energy pillar of the national platform of the “NWFE” program, through concessional development financing worth €54 million from the German side, of which €3 million grant, in implementation of the joint statement issued in November 2023, with the participation of 20 development partners, international financial institutions and international alliances, as well as the joint political declaration issued during the COP27 climate conference, between Egypt, Germany and the United States of America, in which the two countries pledged to provide support and assistance to Egypt’s efforts in the green transition and a just transition towards renewable energy.

The Ministry of Electricity and Renewable Energy is scheduled to benefit from development financing in implementing a project to add 450 megawatts to the capacity of the “Abis transformer and load-reducing station” in the new city of Abu Qir, and to support the stability of the network after low-efficiency power stations are taken out of service, and to improve access to renewable energy that is produced in the Red Sea area to the northern coastal region.

Al-Mashat explained that Egyptian-German relations at the level of development cooperation are witnessing remarkable development, which enhances development efforts in Egypt in various fields with the strong support of H.E. President Abdel Fattah El-Sisi, adding that the Ministry of International Cooperation is working to support these efforts and continuous coordination to meet the requirements of various national entities and enhance the development vision in the country, especially in the areas of transition to a green economy, and to support efforts to develop education, technical education, and other fields.

Al-Mashat added that, within the framework of the joint political declaration, the German side pledged to make €258 million available in the form of debt swaps, grants and concessional financing, and last June, a debt swap agreement worth €54 million was signed for the benefit of the transportation network development project to integrate renewable energies into the network, transferring electricity and strengthening the network, as the project contributes in particular to the establishment of two substations and connecting two wind farms (the “Amyunt” farm and the Red Sea wind farm) with a capacity of 500 megawatts each to the national transmission network, adding that the Ministry of International Cooperation is working to benefit from international pledges for climate financing. In order to enhance efforts to transition to a green economy and implement national strategies in the field of climate action.

H.E. stressed that the Ministry of International Cooperation is continuing to coordinate efforts between development partners and national authorities in order to implement the goals of the energy pillar within the “NWFE” program under the umbrella of the National Strategy for Climate Change 2050, and the Nationally Determined Contributions (NDCs), in order to implement renewable energy projects with a capacity of 10 gigawatts, to replace 10 thermal power plants with a capacity of 5 gigawatts, which reinforces Egypt’s move to move to renewable energy and implement its pledge to reach the percentage of renewable energy to 42% by 2030 instead of 2035.

It is worth noting that the Ministry of International Cooperation, last November, issued NWFE’s first follow-up report which reviewed developments in mobilizing innovative development financing and private sector investments for the “NWFE” program, the nexus of water, food and energy, on the occasion of the one-year anniversary of the launch of the program. This took place during a high-level round table, at the conclusion of which a joint communique was issued signed by 20 development partners, international financing institutions, and global alliances in the field of climate action, where it was emphasized that development partners, international institutions, and all relevant entities that will continue to support national efforts to complete all the listed projects in the platform, and to continue cooperation towards the successful implementation of the national platform of the “NWFE” program, which is consistent with the broader goals of the global development agenda and the climate agenda.

The development cooperation portfolio between the Arab Republic of Egypt and the Federal Republic of Germany amounts to approximately €1.6 billion, through which 30 projects were financed in the form of loans, technical support grants, and financial contributions. Many sectors benefited from this portfolio, including energy efficiency, renewable energy, sanitation, and irrigation, water support, solid waste management, migration, labor market, private sector innovation, technical education, vocational training, urban development, administrative reform, women, youth and social development.

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