Vice President of the European Funding Financial institution (EIB) Gelsomina Vigliotti visited Cairo from Sunday to Tuesday to debate with Egyptian officers areas of cooperation, observe up on ongoing initiatives, and focus on initiatives within the pipeline.
Vigliotti began her mission by collaborating within the inauguration of Adly Mansour Central Station on Sunday, the newest a part of Line 3 of the Cairo Metro, for which the EIB offered €600m in financing.
Vigliotti advised Every day Information Egypt that Cairo Metro is an enormous infrastructure undertaking, which is related to financial growth in addition to for social inclusion; due to this fact, we’re very glad to finance this undertaking in addition to many different infrastructure initiatives in Egypt.”
Vigliotti added: “The EIB is an enormous financier of water and wastewater administration initiatives in Egypt. We sit up for cooperating with the Egyptian aspect to proceed investing on this sector and contemplating the help for desalination initiatives because the financial institution has an incredible expertise within the water sector, in addition to, we’re excited about supporting Egypt within the renewable vitality sector.”
She additional famous that the EIB has invested quite a bit within the SMEs sector by the help of economic intermediaries working on the native stage and the financial institution has necessary relationships with Egyptian banks. Because the pandemic, the financial institution has invested €1.6bn of help to financing SMEs by the Egyptian banks.
The EIB VP met with Egyptian banking leaders and visited SMEs that had been funded by the EIB’s finance programme to Banque Misr. The SME was in a position to develop its enterprise by the offered help. The SME financing programme helps SMEs and promotes the expansion of the Egyptian economic system. Over and above, the financial institution has an formidable plan to increase investing on this sector to strengthen the non-public sector within the nation.
The EIB and Banque Misr formally agreed to strengthen cooperation to additional strengthen help for SME lending and improve financing for firms in sectors most impacted by the COVID 19 pandemic.
Two new technical help programmes had been launched in Cairo. The primary technical help programme will additional strengthen credit score danger administration and adoption of SME financing finest follow to allow Banque Misr to extend financing for smaller firms. The second initiative will allow Banque Misr to raised establish bankable sustainable non-public sector funding initiatives and develop new monetary merchandise focused for SMEs. This may improve help for sectors most impacted by the COVID-19 pandemic and is a part of the EU Commerce and Competitiveness Programme.
Egypt is the financial institution’s largest nation of operations outdoors the EU. Accordingly, in 2021 alone, the EIB offered Egypt with greater than €1bn for city transport, expanded Telecom Egypt’s 4G broadband community, and enterprise financing by a brand new credit score line with Banque Misr.
Moreover, the EIP VP Vigliotti has met with Prime Minister Mostafa Madbouly who praises the distinguished partnership with the Financial institution and its dedication to financing precedence initiatives and enhancing cooperation with the non-public sector.
Madbouly stated that the continuing cooperation portfolio between Egypt and EIB quantities to almost €3.5bn in sectors of water, sanitation, transportation, civil aviation, SMEs, vitality and the atmosphere.
Madbouly highlighted the Egyptian authorities’s keenness to boost the participation of the non-public sector in its growth plans, as necessary measures are being taken to boost the participation of the non-public sector within the nationwide economic system by growing its contribution to the economic system to 65% over the following three years.
With regard to local weather change points, the Prime Minister affirmed that Egypt will undertake, throughout its presidency of the UN Local weather Change Convention 2022 (UNFCCC COP 27) a complete and impartial method, so as to be certain that convention yields constructive leads to favor of supporting worldwide local weather motion.
“We should transfer from pledges and guarantees to precise implementation of commitments, when it comes to emissions cuts and financing,” he disclosed.
For her half, Vigliotti acknowledged, “Egypt is the main nation of operation for the European Funding Financial institution outdoors Europe and that is my first official go to to the nation since being nominated Vice President. Right this moment’s alternate builds upon working conferences with Overseas Affairs Minister Sameh Soukry and Worldwide Cooperation Minister Rania Al-Mashat on the EIB’s Luxembourg headquarters in current weeks. The EIB has a singular expertise supporting local weather motion right here in Egypt and world wide and is working carefully with Egyptian companions forward of COP 27.”
On Tuesday, the EIB VP met Minister of Transport Kamel Al-Wazir to debate additional cooperation within the transport sector, wherein the latter confirmed that Egyptian political management directed the maximisation of the inexperienced, sustainable, environmentally pleasant mass transportation system.
Al-Wazir stated, “We implement a complete plan for the event and modernization of all suburban traces along side the event and modernisation of three predominant traces of the railway community.
Vigliotti elaborated: “Throughout my go to to Egypt, I noticed large initiatives being applied in all fields, together with transport sector, which embodies nice renaissance that Egypt is witnessing throughout the period of Egyptian President Abdel Fattah Al-Sisi”
The 2 sides mentioned the newest developments associated to the financing of quite a few initiatives inside the framework settlement for infrastructure value €1,128bn, such because the rehabilitation of Raml tram in Alexandria with a worth of €138m, Abu Qir/Alexandria railway electrification undertaking with a worth of €750m, moreover, the second line rehabilitation undertaking with a worth of €240m. Along with, cooperation in quite a few railway initiatives corresponding to modernising signaling and communication programs for the Tanta / Mansoura / Damietta line, the renewal of railway engineering works from Tanta / Mansoura. Furthermore, the financial institution financed quite a few different metro initiatives, corresponding to contributing to financing of the third part of Line 3, with a worth of €600m, and contributed to financing the event of the Cairo Metro Line 1, with a worth of €305m.
Vigliotti additionally met Mohamed Shaker, Minister of Electrical energy and Renewable Vitality after her go to to the positioning of an influence transformer station of October 6, with a voltage of 500/220 kV, with a delegation from the European Union. The EIB is the most important financier a part of the undertaking, and the European Union, the KfW and the French Growth Company are additionally co-financing, inside the framework of the Egyptian Energy Transmission undertaking.
Shaker acknowledged: “Egypt is trying ahead to the completion of the inexperienced vitality hall undertaking for the advantage of all African international locations, and after the completion of those initiatives, Egypt will probably be a pivotal heart for electrical interconnection between Europe and Arab and African international locations.”
Vigliotti praised the good experience that the Egyptian electrical energy and renewable vitality sector possesses in all fields.