The agreements include €171.5 million in soft loans, debt-swap arrangements, and grants to support projects in renewable energy under the NWFE program, solid waste management, and investment climate enhancement.
Egypt and Germany signed a comprehensive package of cooperation agreements, soft financing, debt swaps, and technical grants worth a total of €294.5 million (approximately EGP 16 billion), following a round of governmental negotiations between the two sides, according to a statement from the Ministry of Planning, Economic Development and International Cooperation.
The agreements include €171.5 million in soft loans, debt-swap arrangements, and grants to support projects in renewable energy under the NWFE program, solid waste management, and investment climate enhancement.
They also include the signing of the 2024 Egyptian-German Negotiation Protocol, which allocates an additional €123 million in soft financing and technical support for the upcoming period.
Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, stated that the current visit to Germany has been fruitful on multiple levels, both in negotiating new programs and in signing executive agreements for key development projects, as well as expanding the debt-swap program.
During the visit, the minister witnessed the signing of a new tranche of the Egypt-Germany Debt Swap for Development, worth €50 million, between the Central Bank of Egypt, the Ministry of Electricity, the Egyptian Electricity Transmission Company, and the German Development Bank (KfW).
The tranche will finance the grid connection of the ACWA Power 1 & 2 wind farms—providing 1100 MW of wind energy—helping ease the external debt burden while converting liabilities into domestic investments in clean energy.
Additionally, an agreement was signed for €86 million (including €54 million in soft financing and €32 million in complementary grants) to connect wind power stations in Ras Ghareb and Gabal El-Zeit to the national grid.
The project aims to strengthen the grid’s capacity to absorb growing renewable energy output and support Egypt’s transition toward a smarter, more flexible electricity network under the Sustainable Energy Strategy 2035.
In parallel, Al-Mashat witnessed the signing of a €15 million grant agreement for the project “Risk Management Mechanisms – Phase II,” between the Central Bank of Egypt, the Credit Guarantee Company (CGC), and KfW. The project aims to enhance credit-guarantee mechanisms, support SMEs, and expand their access to finance by reducing credit-related risks—part of broader efforts to improve Egypt’s investment and financing environment.
A €20 million grant agreement was also signed to finance Phase III of the “Solid Waste Management Project” between the Central Bank, the Ministry of Environment, and KfW, under the National Solid Waste Management Program.
The project supports environmental protection and reduces public-health risks by developing effective national and local policies, legislation, and institutional frameworks, alongside implementing the necessary infrastructure in targeted regions.
The minister also witnessed the signing of a €570,000 grant from KfW to support the program for energy-efficiency enhancement and the digitalization of distribution networks, aimed at strengthening grid capabilities and improving energy-use efficiency.
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