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  • Sunday, 06 March 2022

Egypt and the European Bank for Reconstruction and Development Sign 2 MoUs in Green Hydrogen & in Inaugurating the Tourism Sector Skills Council, & 1 Agreement to Develop the Alexandria Metro worth €250 million

● Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat: The cooperation documents reflect the strategic relationship between the EBRD and Egypt in supporting the country’s development priorities. The coming period will witness more joint work within the 2022 - 2027 Country Strategy framework.

● The new documents come within the framework of the Government of Egypt’s commitment to transitioning towards a green economy, to increasing investment in human capital, and to developing infrastructure for a green and sustainable transport sector. ● The event witnessed the signing of a development financing agreement to implement the Alexandria Metro, worth €250 million; ensuring sustainability in the transport infrastructure. ● The event witnessed an MoU to assess the prospects of a green, low-carbon hydrogen economy; supporting the transition towards a green economy. ● The event witnessed an MoU to cooperate in establishing the Tourism Sector Skills Council in Egypt to promote investment in human capital.

The launch of the Egypt - European Bank for Reconstruction and Development (EBRD) Country Strategy 2022-2027 witnessed the signing of two Memoranda of Understanding (MoUs) in green hydrogen and tourism, and an agreement to develop the Alexandria Metro, which comes within the framework of the Government of Egypt’s commitment to implementing a green transformation through innovative strategies, to increasing investment in human capital, and to shifting towards a sustainable and green transport sector as part of the National Climate Change Strategy 2050.

During the launch event, the Ministry of International Cooperation and the EBRD signed a development financing agreement worth €250 million for the implementation of the Alexandria Electric Metro project, which aims to develop the existing Abu Qir railway, linking downtown Alexandria with Abu Qir area, located in the northeast of the governorate. The Ministry of Electricity and Renewable Energy and the Ministry of Petroleum and Mineral Resources signed an MoU to assess the potential of a low-carbon hydrogen supply economy in Egypt with the EBRD. This technical support aims to study the technical, economic and regulatory feasibility of developing hydrogen supply chains in the context of the economy. Moreover, the Ministry of Tourism, the Egyptian Federation of Tourist Chambers and the EBRD signed an MoU on establishing a Tourism Sector Skills Council in Egypt, through which the bank will provide technical support, aiming to invest in human capital, to identify the market’s required skills, and to provide training in the tourism and hospitality sector.

The Minister of International Cooperation and Egypt’s Governor at the EBRD H.E. Dr. Rania A. Al-Mashat said that these cooperation documents reflect the strategic relationship between the bank and Egypt, and spotlights supporting development efforts in the country, within the framework of the new cooperation strategy.

Al-Mashat added that these agreements stimulate efforts made within the framework of the green transformation, reducing harmful emissions, increasing investment in human capital, supporting competencies and developing the skills of those working in the tourism sector, as well as enhancing the transport infrastructure in terms to sustainability, and to keep pace with technological advancements. This reflects the Government of Egypt’s commitment to promoting joint work between relevant entities, and stimulating the participation of the private sector in development in a way that accelerates progress towards the state’s development vision, while securing development financing and technical support that is in line with the strategic priorities of a green, comprehensive and sustainable economic transformation. The Minister added that the coming period will witness more areas of cooperation with the EBRD within the framework of the new strategy from 2022-2027, to meet the Government of Egypt’s development priorities, and the strategies it implements to advance all sectors, including the National Climate Change Strategy 2050, in line with the transformation to a green economy and the 2030 vision.

The Minister of Electricity and Renewable Energy H.E. Dr. Mohamed Shaker, said that since 2014, Egypt implemented clear plans for economic and structural reform across sectors, especially in the energy sector within the framework of transitioning to a green economy, referring to the Integrated Sustainable Energy Strategy (ISES), aiming to diversify the energy mix from renewables to reach 42% by 2035. This strategy has been a major focus of cooperation between the government and international institutions, putting a green transformation as a top priority, including the EBRD.

Shaker pointed to coordination and cooperation with the Ministry of Petroleum and Mineral Resources in working together in the field of hydrogen in particular, and other fields of energy in general. The Minister of Petroleum and Mineral Resources H.E. Eng. Tarek El Molla, said that Egypt is committed to the pivotal role in producing hydrogen as a clean fuel and exporting it to global and European markets to reach carbon neutrality because of its competitive opportunities, considering the strategic location and availability of infrastructure, natural gas sources and renewable energy. He stressed the importance of the current efforts of all ministries in the National Hydrogen Committee, and that the ministry looks forward to supporting cooperation with all relevant entities locally and internationally to support Egypt and the world's efforts to achieve the goals of the Paris Agreement. During his speech, the Minister of Tourism and Antiquities, H.E. Dr. Khaled El-Enany said that the Ministry’s Strategy for Sustainable Development 2030 includes a special focus on enhancing community participation and human resources by empowering women and youth, achieving equality and equal opportunities, and integrating and involving local communities in touristic and archaeological areas in the process of sustainable development. El-Enany also referred to the signing of the MoU on the Tourism Sector Skills Council in Egypt, in cooperation with the Egyptian Federation of Tourist Chambers. He highlighted that one of the Ministry’s objectives in the sustainable development strategy in this axis is to enhance cooperation with international organizations and development partners to establish specialized training centers, to prepare training plans and programs to enhance the technical and administrative skills of workers in tourist facilities, such as in archaeological sites and museums. Mark Bowman, Vice President of the EBRD for Policy and Partnerships said, “We are proud to contribute to the future strategy for low-carbon hydrogen production in Egypt in line with the EBRD’s commitment to mitigating climate change. The bank has been a strong supporter of renewable energy development in Egypt as it advised on policies, technical assistance and development financing to support development efforts in the country.” The joint strategy between Egypt and the European Bank for Reconstruction and Development is based on three main priorities: to accelerate progress towards the national agenda by promoting a more inclusive economy for Egyptian businesses, women and youth; accelerating the country’s green economy transition; and enhancing competitiveness by supporting private-sector growth and strengthening governance. These key themes were developed through consultations that took place over the past year between the Ministry of International Cooperation, and all relevant government entities, EBRD officials, the private sector and the civil society. It is worth noting that the relationship between Egypt and the EBRD dates back to 1991, and that the joint cooperation with the bank aims to accelerate progress towards national development, consistent with the UN Sustainable Development Goals (SDGs). Over the years 2018, 2019, 2020 and 2021, Egypt was the largest country of operations in the EBRD in the Southern and Eastern Mediterranean region (SEMED). Since the beginning of the bank's operations in Egypt in 2012, €8.6 billion has been invested in 145 projects, of which 76% went to the private sector and 24% to the public sector.