Egypt, Norway explore cooperation on infrastructure financing guarantee scheme
Egypt and Norway discussed potential cooperation on a proposed financing guarantee mechanism for infrastructure projects designed to mobilise private capital and manage credit risks, the Egyptian Planning and Economic Development Ministry said on Wednesday.
Planning Minister Ahmed Rostom met Norwegian Minister of International Development Åsmund Aukrust on the sidelines of the annual meetings of the International Monetary Fund and World Bank in Bangkok, in the presence of Foreign Minister Badr Abdel-Atty.
Egypt is working with the World Bank Group on the proposed Infrastructure Finance Guarantee Facility (IFGF) Mechanism, envisioned as a specialised national platform to manage credit risks and mobilise private capital for infrastructure projects developed in partnership with the private sector, Rostom added.
He said the mechanism would provide a unified framework for assessing and approving projects through a single window, helping speed up procedures and improve transparency.
It would also improve financial risk management by converting direct sovereign guarantees into managed financial commitments, allowing the government to respond more efficiently to sudden financial shocks, Rostom added.
The proposed IFGF would support projects designed to secure sustainable water resources, including seawater desalination and wastewater management and recycling. It would also cover green transition and energy projects, including sustainable transport and distributed renewable energy, as well as infrastructure development in Egypt’s industrial zones.
Aukrust expressed interest in learning more about the mechanism and its potential applications, stating that Norway was ready to explore opportunities for participation, according to the ministry.
Rostom said Egypt sought to strengthen bilateral ties with Norway and expand cooperation with international development partners to mobilise the resources and expertise needed to support its development priorities.