Infrastructure

Cities of the Future

Infrastructure

Cities of the Future

Investing in sustainable infrastructure is essential to promoting an inclusive society

Cities of the Future

The power of infrastructure to shape economies and societies is enormous. It underpins commercial life, provides vital social services and supports human interaction across every road. Developing infrastructure and innovation alike are the driving force of economic growth, enabling the reinvention of the surrounding built environments. Public-Private Partnerships are becoming increasingly important in shaping the future of Egypt’s sustainable infrastructure. Much of the world today lives in bustling cities where population growth is rapid, relying on transportation for daily life activities is crucial, and technology is on the rise. Technologically advanced, sustainable and resilient infrastructure paves the way for an inclusive, private sector led green economic recovery. The development cooperation portfolio with the Ministry of International Cooperation answering SDG 9: Industry, Innovation and Infrastructure includes 36 projects with a total financing of $5.737 billion, making up 22.3% of ODA financing. With an additional 30 projects for SDG 11: Sustainable Cities and Communities, worth $1.497 billion and 34 projects for SDG 7: Affordable and Clean Energy, worth $5.950 billion Egypt continues investing in resilient infrastructure to unleash the potential of dynamic and competitive economic forces, generating employment, promoting inclusive entrepreneurship and facilitating trade to build back better.

People at the Core

The tech advances of the Fourth Industrial Revolution have fundamentally altered the society in ways both seen and unseen. This digital transformation has changed how people live and work, and everything in between. One area of our daily life is how infrastructure is designed, developed and delivered, requiring all stakeholders to come together, implementing effective strategies and creating enabling environments to allow for innovation and opportunities. The interest in tech - innovation provides necessary technical skills that are needed in a modern, contemporary industry; whatever that industry may be. Hand in hand with the National Agenda for 2030, infrastructure investments are complementing educational reforms as well. The progress in every sector goes back to the people, because it's the people who help in building the nation for a sustainable and resilient future.

Projects in Action

In 2020, the Ministry of International Cooperation concluded agreements worth $1.3 billion in total dedicated to building resilient infrastructure and promoting inclusive and sustainable industrialization; SDG 9: Industry, Innovation and Infrastructure and a total of $1.066 billion in total dedicated to promoting sustainable cities and communities, making settlements more inclusive, safe and resilient; SDG 11: Sustainable Cities and Communities.

An example, for alternative means of financing urban infrastructure development is the EBRD support of Egypt’s New Urban Communities Authority (NUCA) through the diversification of funding sources by tapping the debt capital market with an investment of $103 million in the latest $638 million bond issuance by El Taamir, the securitisation special purpose company of NUCA. The EBRD’s investment brings its total contribution to $206 million in NUCA’s $1.3 billion bond programme, helping free up much-needed resources to continue developing new sustainable towns on desert land with the aim of relocating some of Egypt’s population away from the Nile Delta.

Public - Private Partnerships for Infrastructure Transformation

The Government of Egypt has been able to scale up private sector involvement in infrastructure and develop successful public-private partnership models, owing to a national policy encouraging private investments. There are currently more than 1,000 private sector companies and nearly two million Egyptian workers working on national mega projects that are contributing to a new chapter in Egypt’s economic progress with 35 projects in the housing sectors with a total of $5.657 billion, 23 projects in the electricity and energy sector with a total of $4.896 billion, 17 projects in the transport sector with a total of $4.762 billion, 6 projects in the petroleum sector with a total of $1.129 billion, 10 projects in the irrigation and water resources sector with a total of $982 million and 17 projects in Sinai with a total of $1.950 billion.

Achieving Sustainability through Quality Infrastructure

In November 2020, an agreement with Italy for a grant worth $7.5 million was signed to support the Robiki Leather City through the financing of technical assistance. The city, specialized in the production and tanning of leather in Badr City, encourages and supports the competitiveness of Egyptian Leather production locally and abroad, and eliminates environmental pollutants resulting from chemicals used in tanning operations.

Purpose as the Driver

Infrastructure is compelling in attracting investment and development financing and Egypt provides a unique example where cooperation and partnership were showcased due to the efforts in infrastructure. Infrastructure in the UN SDGs falls under SDG 9: Industry, Innovation and Infrastructure.

Here are some of the global target goals, of which Egypt is also heavily working towards:

Goal 9 (Target 9.1)

Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.

Goal 9 (Target 9.2)

Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.

Goal 9 (Target 9.3)

Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.

Goal 9 (Target 9.4)

Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

Goal 9 (Target 9.5)

Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.

Goal 9 (Target 9.A)

Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States.

Goal 9 (Target 9.B)

Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.

Goal 9 (Target 9.C)

Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.