Egypt has signed on Tuesday a grant agreement worth €151 million ($170.3 million) with the French Development Agency (AFD) to support the country's energy sector. The agreement was signed by Egypt's Minister of International Cooperation Rania Al-Mashat, France's Ambassador to Egypt Stéphane Romatet, and AfD Country Director Fabio Grazi. The grant is designed to support Egypt's Energy Sector Budgetary Support Programme. The programme targets two objectives, the first is to enhance financial sustainability, governance, and operational efficiency of the electricity sector, while the second is to support clean energy and green growth, said Al-Mashat. It also provides three-year technical assistance to the Ministry of Electricity and Renewable Energy and its affiliated utilities, supporting reforms for a sustainable energy sector through capacity building, and laying assessment methodologies of direct and indirect socio-economic impact and regulations set by the Electricity Regulation Authority. The agreement is part of the Egypt's plan to form a multi-donor platform around a shared policy matrix to secure immediate funding from multilateral and bilateral development partners for budgetary support and assistance in mitigating the impact of the coronavirus pandemic, the ministry said in a statement. It is expected to provide financing support to the energy sector according to the goals set out in the comprehensive Sustainable Energy Strategy 2035 adopted by the Egyptian government, which emphasises the importance of renewable energy. Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker hailed the agreement as it would help in taking major steps to reform the country's energy sector. "Signing this financing agreement for the electricity sector is good news for both France and Egypt, as it highlights our joint commitment to support our partnership in the energy sector." Ambassador Romatet said. "It also greatly serves efforts in the climate field, as the funding allows us to accompany Egypt on its journey to develop a variety of energy sources with low carbon emissions," AFD's Grazi said: "The new DPF to the electricity sector represents a key step in the commitment of AFD to support the transition towards a sustainable and efficient energy system in Egypt,"
