Int'l financial institutions should assume bigger role in funding mega development projects: Rania el-Mashat



Fri, 15 Oct 2021 - 02:22 GMT


Fri, 15 Oct 2021 - 02:22 GMT

Minister of International Cooperation Rania el-Mashat - Press photo

Minister of International Cooperation Rania el-Mashat - Press photo

CAIRO – 15 October 2021: The international community and financial institutions should assume a bigger role in funding mega infrastructure projects through soft loans and blended and innovative financing, Minister of International Cooperation Rania el-Mashat said Friday.

Egypt has made great strides in the transport infrastructure to be a smart, sustainable, and supportive sector of climate action as Egypt transforms towards green economy, Mashat said during a panel discussion as part of the annual meetings of the World Bank Group and the International Monetary Fund.

Not only did Egypt implement reforms and mega projects to overcome the repercussions of Covid, but also began a strong economic reform program before the pandemic and executed huge national projects afterwards. All this contributed to stability and economic growth during the pandemic, she added during the discussion titled “Transforming to low-carbon transport… sustainable, smart and supportive of climate action.”

Egypt 2030 vision strives to reduce air pollutants and harmful emissions by 50 percent by transforming transport into a smart, sustainable sector, as well as enhancing roads and means of transportation to give impetus to electric vehicles. The projects include the high-speed electric train that connects Egyptian governorates to the new urban communities and industrial areas, as well as the monorail that connects 6th of October City to the Administrative Capital, Mashat said.

The transportation sector is one of the most important priorities in Egypt as more than 5.5 million Egyptians use the subway and railways daily. Egypt also established dry ports for their importance in the green economy, the minister added.

Mashat went on to emphasize the pivotal role of the private sector in Egyptian development, as well as multilateral and bilateral development partners who have contributed to vital transport projects. For example, Egypt executed the national subway network in cooperation with such partners and they are still contributing to new phases of the subway.

International financial institutions could enhance the participation of all stakeholders to push forward the global agenda for climate action and provide funding based no partnership between the public and private sectors, especially that the private sector is of a pivotal importance, the minister said, adding that these institutions could also provide technical support needed for these major projects.

The transport sector is one of the most that benefitted from development funding, as the ministry concluded development financing agreements during 2020 at $2.8 billion, 26.7 percent of the total funds, according to Mashat.



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