February 15, 2021
On February15th, JICA represented by Chief Representative of Egypt Office, Mr. Omura Yoshifumi signed budget support loan agreement totaling JPY 25 billion (equivalent to Euro 200 Million) with the Arab Republic of Egypt represented by the Minister of Finance, H.E. Dr. Mohamed Maiit in the presence of H.E. Ambassador Masaki Noke, Ambassador of Japan to Egypt, H.E. Dr. Rania El Mashat, Minister of International Cooperation and H.E. Dr. Mohamed Shaker, the Minister of Electricity. The finance, which comes at an important timing amid the global challenges of COVID-19 pandemic, is expected to boost the liquidity for Egypt while supporting critical reforms for improving the governance and financial sustainability of electricity sector and moving towards a competitive market for enhanced private sector participation as well as facilitating green growth..
The Development Policy loan is a co-financing program is in partnership with the African Development Bank (AfDB); as a first collaboration in Egypt under the 4th phase of the Enhanced Private Sector Assistance for Africa (EPSA) initiative - announced by the Government of Japan and the AfDB in the Tokyo International Conference on African Development (TICAD 7) and is also in collaboration with the French Development Agency for a collective financing of Euro 500 million from the 3 partners.
Since 2014, the Government of Egypt has adopted an economic reform program that includes ambitious energy sector reforms. Until present, the Government of Egypt has demonstrated strong commitment to the economic reform and the fiscal consolidation efforts have achieved good results, which has helped the Egyptian Government in dealing with external shocks. This program is encouraging the continuation of the reform efforts especially amid COVID- 19, which threatens to hinder the progress of the different economic sectors including the power sector in Egypt.
The objective of the program is to enhance sustainability and stability in the power sector through supporting policy reforms such as i) improving both governance and financial sustainability and ii) promoting energy efficiency and renewable energy for green growth thereby contributing to the promotion of economic stabilization and development efforts for the Arab Republic of Egypt.
JICA Chief Representative, Mr. Omura Yoshifumi pointed out that the current DPL represents a significant step towards further consolidation of relations with the Government of Egypt not only to develop energy sector and promote renewable energy, but also as a sign of international support given the challenges imposed on the Arab Republic of Egypt due to the COVID - 19.
He hailed the long fruitful relationship with the Ministry of Electricity and Renewable Energy and the continuous support of H.E. Dr. Mohamed Shaker; aspiring for further strengthening of cooperation through implementation of the forthcoming project for PV Power Plant in Hurghada including first ever application of battery storage in Egypt.