World Bank offers $3.2bn to Egypt

The World Bank has offered to finance 18 development projects in Egypt, through loans totalling $3.2bn, in addition to 10 grants worth $66.2m.

The World Bank has offered Egypt a loan of $3.2 billion to finance 18 development projects in the country, according to a press release issued by the General Authority for Investment (GIFA), an Egyptian governmental agency dealing with inward investment.

In the release, GIFA said the loan worth $3.2 billion were in addition to 10 grants worth $66.2 million funded by The World Bank. The loans will be used to finance developmental projects across Egypt.

According to Fayza Abul-Naga, Egypt’s minister of international cooperation, the projects will be in the following sectors: electricity, new and renewable energy, financial reform, agriculture, health, education, trade, environment, housing, irrigation, transport and infrastructure.
The World Bank has classified Egypt as a safe indebted nation. Its foreign debts reached 17 percent of the gross domestic product (GDP) in 2009, according to the press release.

The World Bank has scaled up its support to Egypt in the recent past, with a comprehensive programme of activities launched by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA).

The current IBRD portfolio includes 17 ongoing projects estimated at a total value of $2.7 billion.

Earlier this year, the Egyptian Parliament passed a bill allowing private participation in public projects. The government also announced the setting up of 21 investment zones to be operated by private players.