Egypt - Nexus Water-Food-Energy (NWFE) - Energy Pillar: Incentive Payments (EBRD-21695)

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
U
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
  • Climate and Environment
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 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.
Grant Amount (USD)
$ 40.00 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.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 13, 2025

Disclosed by Bank Jun 12, 2025

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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.

As stated on the project disclosure page, Egypt, with support from the EBRD's High-Impact for Climate Action Fund and other donors, launched the Energy Pillar of the Nexus Water-Food-Energy Programme (NWFE-EP) in 2023. As a cornerstone of this initiative, Egypt aims to decommission 5 GW of outdated and inefficient fossil fuel power plants, thereby freeing up capacity for 10 GW of renewable energy and accompanying grid infrastructure investments. This strategy is designed to bolster energy security by replacing unreliable assets with resilient, high-performance facilities that enhance the stability and reliability of Egypt's power system.

A critical element of this project is a USD 40 million package of grants, structured as Performance Incentive Payments (PIPs). These funds, governed by a legally binding agreement between the Bank, supported by international donors, and the Egyptian Electricity Holding Company (EEHC), are earmarked for meeting decommissioning milestones for retiring the underutilized capacity. The PIPs will be disbursed in tranches linked to specific targets under NWFE, ensuring accountability and progress.

Disbursement of the financial incentive payments will be made against defined milestones, along with defining the appropriate arrangements in place to monitor, verify and report the progress and achievement of the milestones that EEHC is required to meet. This will be primarily done by NWFE's Energy Pillar Technical Support Unit as well as EBRD.

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

Contact Information
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ACCESS TO INFORMATION

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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

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