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  • Friday, 26 May 2023

The Minister of International Cooperation، H.E. Dr. Rania A. Al-Mashat: “Egypt is the first country to benefit from the guarantee available from the United Kingdom to the African Development Bank (AfDB) to finance climate projects in Africa and to promote the implementation of Nationally Determined Contributions (NDCs)

● The United Kingdom provides a guarantee of €80 million to the AfDB to support the 3rd Pahse of the Al-Gabal Al-Asfar Wastewater Treatment Plant project which enhances the bank's expansion in financing more climate projects in Egypt

● Minister of International Cooperation: The guarantee stimulates joint efforts with the African Bank to finance mitigation and adaptation projects with the repercussions of climate change.. and stresses the importance of multilateral cooperation in stimulating development efforts and climate action

● British Minister for International Development: The Guarantee  strengthens water security efforts in the African continent at a time of great challenges

The Minister of International Cooperation, H.E. Dr. Rania A. Al-Mashat, witnessed the announcement of the United Kingdom and the AfDB about the first tranche of projects benefiting from the United Kingdom’s guarantee to support the AfDB in financing climate projects on the continent, including the provision of a guarantee of €80 million, to cover part of the financing provided by the bank for the implementation of the third phase of the Al-Gabal Al-Asfar water treatment plant project. This enhances the bank’s ability to expand financing of other projects in the fields of mitigation and adaptation in Egypt, within the framework of the guarantee that was announced during COP26, at a value of $2 billion. The bank aims to increase climate financing in the countries of the African continent until 2027, and to enable countries to implement their NDCs, divided between efforts and projects to mitigate and adapt to the repercussions of climate change.

This came during the high-level event that was held within the activities of the 58th Annual Meetings of the AfDB 2023, in the presence of the British Minister of State for International Development and Africa, H.E. Andrew Mitchell, President of the AfDB, Akinwumi Adesina, Minister of Economy, Planning and Cooperation of Senegal, Oulimata Sarr as well as AfDB officials and the Ministry of International Cooperation technical team.

Al-Mashat said, "First of all, I would like to thank the British government for its constructive cooperation through this initiative, which reflects the importance of multilateral cooperation in order to support development efforts, promote climate action in Africa, and stimulate efforts to mitigate and adapt to the consequences of climate change." H.E.  explained that Egypt is the first country to benefit from the guarantee that was announced during COP26, along with Senegal, which reflects the depth of Egyptian relations with multilateral and bilateral development partners, and an affirmation of its commitment to moving forward in development efforts and climate action.

Al-Mashat indicated that the guarantee for the 3rd phase of the Al-Gabal Al-Asfar wastewater project reflects the great value that the project represents in light of the steps taken by the Government of Egypt to promote sustainable management of water resources and stimulate efforts to adapt to climate changes, as the project provides its services to about 12 million people in the first and second phases, and the third phase provides services to about 5.5 million people, which reflects the commitment to achieving water security and enhancing climate resilience.

Moreover, H.E. stressed the importance of the water sector in Africa in light of the climatic challenges facing the continent and the increase in water needs, adding that the AfDB provides financing for the third phase of the project at a value of €110 million, with €80 million from the bank and €30 million from the “Africa Grows Together” Fund, pointing out that the project achieves many goals, including improving environmental sustainability by protecting the environment and water resources from pollution and reducing health risks due through the discharge of untreated water into drains and canals; enhancing agricultural production by increasing water reuse to achieve food security, which results in treated water suitable for cultivation of 700,000 acres; and increasing and  expanding the capacity of the treatment plant by one million cubic meters/day (phase three) from 2.5 million cubic meters to 3.5 million cubic meters per day for primary and secondary treatment. Additionally, the third phase of the project contributes to increasing the number of direct beneficiaries from 12.5 million to 17.5 million people.

For his part, British Minister Andrew Mitchell, said, "I thank the Arab Republic of Egypt for hosting the annual meetings of the AfDB, at this time of great challenges facing the continent and the countries of the world, and I express my happiness to launch the Room 2 Run guarantee through which the UK supports the ability of the AfDB to increase its investments in the continent, and we have chosen the first two projects in Egypt and Senegal, to be the first projects to benefit from the guarantee, which amounts to $2 billion.” He stressed the importance of the two projects for which the guarantee was issued in light of the necessity of water security for the continent of Africa, pointing out that the Al-gabal Al-Asfar water treatment plant project in Egypt enhances the state's ability to manage water resources and benefits millions of citizens.

The AfDB is one of Egypt's main development partners. Since its inception, the bank has contributed to financing a number of important development projects in various sectors through development funds, grants and technical assistance provided by it. The bank has provided more than $6 billion in development funds, including more than a billion dollars to finance 24 operations for the private sector.