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The World Bank has approved USD 700 mn in Development Policy Financing (DPF) to bolster Egypt’s green transition, according to statements here and here. This comes as part of the Bank’s green transformation initiative under its Development Policy Financing (DPF) program which aims to expand the renewables sector, increase energy efficiency, improve climate resilience, and develop a framework for a voluntary carbon credits market.
The DPF round is the first in a “programmatic series of three operations,” the bank continued, with this particular round targeting the advancement of reforms that include:
- Reducing losses from the electricity distribution system;
- Increasing the capacity for climate adaptation, with a particular focus on the financial sustainability of water and sanitation;
- Building up Egypt’s renewable energy sector;
- Establishing a regulatory framework for the voluntary carbon credit market.
What they said: “The government of Egypt is undertaking ambitious economic and structural reforms aimed at creating a more competitive, green and private sector-led economy. Through this budget support instrument, the DPF with the World Bank helps advance policy reforms on three of its top national priorities: building macro-fiscal resilience, enhancing economic competitiveness and improving the business environment, and supporting the green transition,” International Cooperation Minister Rania Al Mashat said.
The first tranche in a recently greenlit USD 6 bn package: The World Bank said in March it will provide Egypt with a USD 6 bn financing package over the next three years with a portion earmarked for the country’s green transition. The package is subject to the group’s board approval, which is anticipated before the end of this month. The financing falls under the Bank’s 2023-2027 Country Partnership Framework with Egypt, under which the bank’s International Bank for Reconstruction and Development will be lending us USD 1 bn a year through to 2027 to support private-sector job growth, health and education services, and climate measures.
