The agreement comes as part of efforts to support Egypt’s national budget and advance structural reforms, with funding of $170 million. It also includes a grant of $400,000 (approximately EGP 19 million) to enhance sustainability at the Abu Rawash wastewater treatment plant.
The signing ceremony was attended by Dr. Yasser Sobhy,
Deputy Minister of Finance, and Dr. Sayed Ismail, Deputy Minister of Housing.
The initiative is part of the Ministry’s efforts, in
coordination with national authorities, to strengthen economic relations with
multilateral development partners and integrate external financing with
national efforts to implement the National Structural Reform Program under the
“National Comprehensive Development Narrative.”
Dr. Al-Mashat highlighted the depth of the long-standing
strategic partnership between the Egyptian government and the AfDB, which has
played a pivotal role in supporting comprehensive and sustainable development
in Egypt. She noted the Bank’s contribution to priority sectors, including
water and wastewater, structural reforms, and transport. She added that the
agreement is part of broader government efforts with various partners to
mobilize concessional financing, support the national budget, expand fiscal
space for human development programs, and advance structural reforms.
She also emphasized the AfDB’s strong role in supporting the
private sector, noting that private-sector-directed financing in 2025 was three
times higher than government-directed operations. This reflects strong
confidence in Egypt’s growing economy and underscores the country’s openness to
new partnerships and foreign investments that can drive innovation, sustainable
growth, and long-term development.
The second phase of the program follows the first phase,
approved by the House of Representatives in December 2024, with funding of $131
million.
In a related context, the Minister highlighted the
importance of the grant allocated to the Abu Rawash wastewater treatment plant,
one of the largest facilities of its kind in the world. The cooperation with
the AfDB aims to enhance environmental sustainability and operational
efficiency at the plant.
In May, the government signed the fourth-phase financing agreement
with the AfDB for the Abu Rawash plant, aiming to increase its treatment
capacity from 1.6 million cubic meters per day to 2 million cubic meters per
day. The project is expected to benefit around 8.6 million residents in Giza
Governorate. It seeks to maximize water resource utilization, improve public
health, ensure environmental sustainability, provide water suitable for
agriculture, and protect ecosystems.
It is worth noting that the Ministry previously announced
that concessional financing to support the national budget over the three years
from 2023–2026 totals approximately $9.5 billion. These funds aim to reinforce
structural and economic reforms, support macroeconomic stability, improve the
business climate and investment environment, and promote the transition to a
green economy.