Egypt inks €109 million AfDB financing deal to provide sanitation services to rural areas in Luxor

Egypt signed on Thursday a development financing deal worth €109 million ($131.1 million) with the African Development Bank (AfDB) to provide residential communities across rural areas in Luxor with sanitation services.

The deal was signed by the Egyptian Ministry of International Cooperation. It took place in the presence of Egyptian Minister of Housing Assam El-Gazzar along with Mamdouh Raslan, Head of the Holding Company for Water and Wastewater (HCWW); and Mohamed Soliman; AfDB’s Deputy Regional Director for North Africa and Country Manager for Egypt.

Under to the deal, AfDB will provide €108 million alongside a €1 million grant to the project which is set to benefit 22,000 homes in Luxor.

The AfDB financing will also go for building on the capacities of workers at the Potable Water and Sanitation Company in Luxor.

Egyptian International Cooperation Minister Rania al-Mashat said the deal would help achieve several of the UN’s Sustainable Development Goals (SDGs); chiefly SDG 3: Good Health and Well-being, SDG 6: Clean Water and Sanitation, SDG 8: Decent Work and Economic Growth, and SDG 11: Sustainable Cities and Communities.

The ministry is keen on coordinating with multilateral and bilateral development partners to support state projects with regards to drinking water and the sanitation sector, as both are vital to the country’s 2030 National Agenda in terms of water resource management and sustainable development, al-Mashat added.

There is less than a decade left until 2030 and the International Cooperation Ministry is accelerating the pace of development in Egypt towards the SDGs through economic diplomacy and its three pillars: Multi-Stakeholder Platforms, Mapping the SDGs, and the Global Partnerships Narrative, the ministry said in a statement.

“The AfDB is among the development partners that made these projects possible”, said al-Mashat.

Around 162,000 citizens will receive immediate benefits from the project, Minister of Housing Assam el-Gazzar said.

In the long run, there would be around 236,000 citizens alongside 30,000 farmers will benefit from the project, el-Gazzar added.

“The project is also in line with the ‘Decent Life’ presidential initiative, which was issued by President Abdel Fattah al-Sisi, as it strengthens water and sanitation services.” el-Gazzar said.

“This complements the state’s efforts in upgrading and ensuring proper water and sanitation services across all governorates in the next 3 years,”

AfDB’s Malinne Blomberg said the deal is a positive step towards ensuring that all citizens are benefiting from clean water and sanitation services, alongside helping Egypt achieve sustainable development.

The ongoing cooperation portfolio between the Ministry of International Cooperation and the AfDB currently amounts to around $640.8 million, covering various development sectors such as electricity, health, research, entrepreneurship, budget support, and water and sanitation.