Egyptian Minister of Planning and Economic Development, Dr. Ahmed Rustom, recently held a comprehensive meeting with a high-ranking delegation from the European Investment Bank. The meeting was attended by Dr. Hussein Issa, Deputy Prime Minister for Economic Affairs. The primary focus was on expanding innovative financing mechanisms, reviewing the status of the joint investment portfolio, and activating an infrastructure financing guarantee mechanism.
Dr. Hussein Issa emphasized that the economic group considers the infrastructure financing guarantee mechanism a strategic tool for supporting large projects and alleviating direct burdens on the budget. This mechanism aims to provide guarantees for infrastructure projects, making them more attractive to investors and reducing the financial strain on the government.
Dr. Ahmed Rustom highlighted the importance of international partners' participation in the guarantee mechanism's capital, which would enhance its institutional sustainability and send a strong confidence signal to attract investments. He stressed the government's commitment to broadening the partnership to establish a permanent and efficient financing entity capable of providing risk mitigation services.
The minister emphasized the optimal use of innovative financing tools, directing them towards projects with a multiplier effect. He explained that expanding the availability of guarantees directly contributes to reducing financing risks, making it possible to attract commercial and concessional financing in partnership with the private sector.
The Ministry of Planning is working on preparing the next cooperation portfolio to identify suitable financing tools for each project, focusing on green transformation, clean energy, and sanitation infrastructure sectors. This aligns with Egypt's Vision 2030 and the National Economic Transformation Program 2027/2030.
Representatives from the European Investment Bank expressed their appreciation for the fruitful cooperation with the Ministry of Planning and Economic Development. They confirmed the bank's interest in participating in developing guarantee structures and financing, as well as expanding support for green energy and infrastructure projects in Egypt.
The meeting demonstrated the growing partnership between Egypt and the European Investment Bank, with both parties committed to fostering sustainable development and economic growth through collaborative efforts.
Key points
- Egypt plans to establish a sustainable infrastructure financing entity to support large projects and attract investments.
- The guarantee mechanism aims to reduce financing risks and make infrastructure projects more attractive to investors.
- The European Investment Bank expressed interest in participating in developing guarantee structures and financing for green energy and infrastructure projects in Egypt.
