Early Warning System

Regions

Middle East and North Africa

Geographic location where the impacts of the investment may be experienced.

Countries

Egypt

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

Government of Egypt

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Energy

The service or industry focus of the investment. A project can have several sectors.

Project Cost (USD)

$ 480.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ EBRD website

Updated in EWS Jan 23, 2024

Disclosed by Bank Jul 5, 2023

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Egyptian authorities (coordinated by the Ministry of International Cooperation (MOIC) and supported by EBRD) have developed a new initiative, representing the Energy Pillar of the Nexus Water-Food-Energy Programme (NWFE-EP), the flagship Egypt initiative at COP27.

NWFE-EP aims at closing 5,000 MW of existing inefficient oil and gas-fuelled power generation capacity (circa 9% of Egypt's total fossil fuel installed capacity) and facilitate investments of >USD 10 billion (primarily from commercial lenders and investors) to support the installation of 10,000 MW of new renewable energy capacity through a range of market routes, open to local and international project developers.

This transformational private climate investment is facilitated by the USD 480 million public investment pillar of the NWFE-EP, which comprises two main elements: (i) investment in decommissioning, dismantling and recycling of fossil-fuelled plants and (ii) investment in grid strengthening and energy storage to facilitate the absorption of large quantities of variable renewable energy generation.

The EBRD's response to enable these investments and tackle financial and institutional bottlenecks through NWFE-EP cooperation platform is a proposal to create the NWFE-EP Technical Support Unit (TSU), an independent dedicated unit hosted in EBRD Cairo RO throughout the implementation of the programme. The NWFE-EP TSU will focus on building a strong financing framework and a policy-dialogue driven structure of institutional support. This is to ensure the implementation of the NWFE-EP initiative in accordance with the Partnership Agreement and set an outline for well-structured institutional support and bankable sub-projects.

NWFE-EP provides a platform to support the accelerated retirement of inefficient oil and gas fired plants in full compliance with international environmental health and safety standards in accordance with the electricity sector development plans. The decommissioning master-plan will provide a comprehensive strategic framework for the entire decommissioning process.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

Investment type and amount not available at the time of the snapshot.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contact information provided at the time of disclosure.

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html