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  • Wednesday, 20 April 2022

The Ministry of International Cooperation Signed €26 million Development Financing Agreement with the KfW Development Bank to Support the Rehabilitation Project of Hydroelectric Stations in Aswan

● The development financing aims to maintain the operational efficiency of the hydroelectric power stations in Aswan and to ensure a sustainable energy supply.

● The Minister of International Cooperation applauded the bilateral cooperation between Egypt and Germany, and its role in promoting efforts to achieve sustainable development.

● The KfW Development Bank Director emphasized the continuation of the bank’s work with the Government of Egypt to support infrastructure development plans.

The Minister of International Cooperation H.E. Dr. Rania A. Al-Mashat, and Director of the KfW Development Bank in Egypt, Dr. Bernd Siegfried, signed a development financing agreement worth €26 million to finance phase 2 of the Rehabilitation of Hydroelectric Power Plants in the Aswan Governorate project. This will be implemented by the Ministry of Electricity and Renewable Energy within the framework of development cooperation between the Government of Egypt and Germany. 

The project aims to replace and renew the power transformers in the water station, while also maintaining the station’s operational efficiency, and increasing economic competitiveness.

Al-Mashat applauded the fruitful and continuous cooperation with the KfW Development Bank and the important role it plays in supporting development projects in various sectors. The ongoing development cooperation portfolio with the bank amounts to  €1.1 billion, aiming to achieve the Sustainable Development Goals (SDGs) including energy, sanitation, water, irrigation, solid waste management, technical education and vocational training.

The Minister also referred to the importance of preparing for field visits to projects financed in cooperation with the KfW Development Bank, especially the solar power plant in Zaafarana, which is also supported by cooperation with Germany through €39 million, also aiming to establish a power station using photovoltaic cells with 50 megawatts . This is being implemented by the New and Renewable Energy Authority (NREA) in light of the country's commitment to transitioning towards a green economy. 

Al-Mashat stressed the importance of international partnerships for implementing adaptation projects and mitigating the repercussions of climate change, in light of Egypt's COP27 Presidency, and also in supporting sustainable development solutions and Egypt’s 2030 Vision. The Minister emphasized the Government of Egypt’s commitment to strengthening economic cooperation with multilateral and bilateral development partners to advance development efforts, further stimulate private sector participation, meet challenges that prevent sustainable development, especially climate challenges, and promote innovative financing to achieve inclusive and sustainable growth.

For his part, the Director of the KfW Development Bank in Egypt, Dr. Bernd Siegfried, said that the three hydroelectric stations in Aswan generate a combined energy of about 2,650 megawatts, benefiting 7.5 million people. He added that the project serves the irrigation systems in the governorate by regulating the flow of water and increasing protection from floods, explaining that the power transformers will be replaced to ensure maximum utilization of sustainable hydroelectric power supply in Egypt. Siegfried added that Germany, through the KfW Development Bank, is committed to supporting the rehabilitation of infrastructure, by developing the energy sector and expanding renewable energy projects, such as wind, solar and hydropower.

In March, the Minister of International Cooperation inaugurated the 1st National Forum on the Future of Work in Egypt, organized by the German Agency for International Cooperation (GIZ). This was within the framework of an employment support project worth €31 million for the Ministry of Education and Technical Education, under the slogan “Joining Forces For Tomorrow and Beyond”.

The ongoing development cooperation portfolio with Germany amounts to €1.7 billion euros, through which 30 projects were supported, covering many sectors, including energy, sanitation, irrigation, water, solid waste management, migration, labor market, innovation in the private sector, technical education, vocational training, urban development, administrative reform, women, youth and social development. This is in addition to the debt swap program worth €240 million in its first and second phases.