Egypt's energy reforms open door to private investment: WB

CAIRO – 5 May 2019: "Egypt's energy reforms have opened a stronger door to private sector investment," President of the World Bank Group David Malpas said.

"The solar power station in Benban, which will be the largest in the world, has attracted more than $2 billion investments, and this shows the role of energy reforms. Similar replicas can be made in vital growth sectors such as transport, agriculture, water and sanitation," Malpas said, expressing his happiness for the success of this giant project.

This came during his visit to the project in Benban, Aswan, in the presence of Minister of Investment and International Cooperation Sahar Nasr, Minister of Social Solidarity Ghada Waly, Governor of Aswan Ahmed Ibrahim, and a number of World Bank leaders.

Malpas said that President Abdel Fatah al-Sisi has succeeded in achieving economic and social changes for the better in Egypt, contributing to rapid growth and improving the investment environment as well as social protection programs.

He added during the conference in Benban that the project model is very important for low-income people, providing them with energy at competitive prices and employment opportunities in the project.

"Today's project demonstrates the importance of the great cooperation between the World Bank and Egypt over the past years that has resulted in the largest project of its kind in the world and is a global model for good risk study, job creation, and energy conservation, as well as economic and environmental sustainability.

He added that four years ago, 20 companies started implementing this ambitious project. Now this project is equivalent to 20 percent of the area of Washington. “This confirms our confidence in the Egyptian leadership, and its ability to succeed economically and mobilize resources to achieve progress, an excellent financing model that can be applied in all economic sectors.”

The World Bank president said that the World Bank seeks to benefit from Egypt's presidency of the African Union to increase the role of the private sector because Sisi has a clear vision to improve economic conditions and achieve technological coverage for the peoples and economies of the continent.

For her part, Nasr stressed that the participation of the private sector in the infrastructure projects alleviates great burdens, allowing greater resources to be allocated to the development of the Egyptian citizen, such as education and health.

She also affirmed that the Ministry of Investment and International Cooperation prioritizes targeting funding from international financing partners for transport and infrastructure sectors.

The project is considered the largest solar power project in the world and was funded by the World Bank with a total value of $653 million. The total value of the project is $2 billion for total power generation of up to 1600 megawatts, with the participation of the European Bank for Reconstruction and Development and a large number of major international companies.

It also targets to contribute to Egypt’s energy self-sufficiency. It is set to generate the equivalent of 90 percent of the energy produced by Aswan’s High Dam.