The European Investment Bank’s (EIB) board has approved an outline finance worth €1.9 billion ($2.17 billion) for Egypt to finance projects in transport and to support the small and medium-sized enterprises (SMEs) sector, Minister of International Cooperation Rania al-Mashat announced on Sunday.
In a press statement, Mashat said the loan provides €1.1 billion for the National Authority for Tunnels (NAT) to implement three projects and allocates €800 million for the National Bank of Egypt (NBE) to back SME projects in countering the impact of COVID-19.
For the €1.1 billion loan, Mashat clarified that it supports the vital Egyptian transport sector, which contributes 4.6 percent to Egypt’s GDP and provides about 6.2 percent of job opportunities in the domestic market.
She added that the railways serve 500 million passengers annually on average, adding that the current project portfolio in the Egyptian transport sector records five billion dollars, covering 30 projects financed by the EIB, the World Bank Group, the European Bank for Reconstruction and Development (EBRD), in addition to Japan, China, Korea and France.
The new loans came as a result of the EIB’s mission visit in February, headed by EU Neighboring Countries at EIB Flavia Palanza, Mashat noted.
She said both sides discussed strategic partnership, affirming that various projects have been implemented in several sectors to support social and economic development and create job opportunities.
The EIB has introduced total finances worth around €9.7 billion since the start of the bilateral strategic partnership in 1979, while the ongoing portfolio records €2.3 billion, she stated.
According to Mashat, Egypt and the EIB agreed together through a joint statement to improve cooperation in new sectors that contribute to promoting comprehensive economic growth and private sector development.
She added that this would also contribute to the implementation of Egypt’s Vision 2030 and is consistent with the United Nations Sustainable Development Goals (SDGs).
On February 8, Egypt welcomed the EIB visiting mission, which resulted in inking a joint agreement outlining five pillars of future cooperation.
These included backing the funding of the public and private sectors, expanding the finances for the projects to provide cleaning water, sewage system, energy, transport and SMEs, as well as supporting the fight against climate change and mitigating their consequences alongside promoting the health and education sectors.
