CAIRO – 24 October 2023: The European Bank for Reconstruction and Development (EBRD) have mobilized financing worth $2 billion from the private sector in NWFE program projects, in addition to grants and concessional development financing, the Regional Director for the Southern and Eastern Mediterranean Region at the EBRD, Heike Harmgart, said.
This came during a meeting held by the Ministry of International Cooperation to follow up on mobilizing innovative financing tools to implement renewable energy projects with a capacity of 10GW within the Nexus of Water, Food and Energy platform (NWFE program) in preparation for COP28 and with the participation of the Ministry of Electricity, the EBRD, the World Bank, Germany, the USA and relevant entities.
“We are very excited about holding the first coordination meeting led by the Ministry of International Cooperation and the Ministry of Electricity and Renewable Energy, which brings together all international financing institutions and parties concerned with the NFWE program,” Harmgart added.
She affirmed the Bank’s commitment to support Egypt in its transition towards a green economy.
Harmgart noted the importance of the NWFE program beyond Egypt, and how it extends to the international community as an effective model that must be replicated to enhance climate and development efforts.
For his part, the Director of Climate Strategies at the EBRD, Harry Boyd, thanked the Ministry of International Cooperation and the Ministry of Electricity and Renewable Energy for the efforts made, saying, “Over the course of a year, we have made significant progress in implementing our commitments on the energy pillar of the NWFE program, which is a unique model, not only in terms of country ownership but also the participation of various development partners. The program is a very important platform for stimulating the global climate agenda and multilateral development bank reforms, and it also goes beyond its importance for Egypt and becomes an important and effective model for other countries. Its reference in the G20 statement is the best evidence of this.”
During the meeting, the working team of the EBRD, the main development partner in the energy pillar within the NWFE program, presented the most prominent results of efforts to mobilize innovative financing tools and solutions and coordination with relevant parties to promote a just transition to renewable energy over the course of a year, based on agreements and letters of intent.
Such letters were signed at COP27, during which investment needs were identified through technical assistance and institutional support, enhancing public investments to develop the electricity network and storage solutions, and mobilizing investments for electricity transmission.
The efforts made also contributed to strengthening technical assistance to prepare a decommissioning plan for 12 thermal energy plants, to be carried out in accordance with international standards, and to serve as a strategic document to determine the goals, milestones, timetable, and strategies for safe and effective decommissioning. This is in addition to the EBRD launching a study to determine the scope of the Just Transition Plan to identify training and reskilling needs and ensure an effective and fair transition plan for affected workers. It is important to note that further follow-up tasks for a just transition will be developed.
The EBRD also contributed to providing technical assistance to the Egyptian Electric Utility and Consumer Protection Regulatory Agency (EgyptERA) to develop regulatory rules for developing production and sale by the private sector of renewable energy projects in a “private-to-private sector” system, and developing green supply chains, in a way that enhances the ability to attract foreign direct investments and develop supply chains that is diversified and flexible in the fields of renewable energy with local participation to promote economic growth and job creation.
Starting in 2023, the EBRD contributed to mobilizing funds of about $2 billion to finance the private sector in NWFE projects, in addition to grants and concessional development financing, including investments in wind and solar energy in the Gulf of Suez and projects that support the strengthening and modernization of the transmission and distribution of the network to accommodate renewable energy sources and draw down existing thermal capacities, according to the Ministry of International Cooperation.
The ministry added that the Glasgow Financial Alliance for Net Zero (GFANZ) is also supporting the NWFE program in cooperation with the EBRD and other partners to enhance investment mobilization efforts.
The Minister of International Cooperation, Rania A. Al-Mashat, held the first high-level coordination meeting to follow up on mobilizing innovative financing tools to finance the energy pillar within the NWFE program, which aims to implement renewable energy projects with a capacity of 10GW, at the Ministry’s headquarters in the New Administrative Capital.
The meeting came in preparation for COP28, which is to be held in the United Arab Emirates, to review the efforts made in moving from pledges to implementation, since the launch of the program and the signing of partnership agreements and letters of intent at COP27 in Sharm El-Sheikh.
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