Egypt Strives for EBRD’s Country of Operations Status – Official

The Egyptian interim government is currently planning to allure the EBRD to carry out operations in Egypt besides the country’s founding membership in the bank.

Egypt’s Deputy Prime Minister and Minister of International Cooperation Ziad Baha El-Din held multiple meetings with officials in the European Bank for Reconstruction and Development (EBRD) on Monday, seeking to bolster the bilateral cooperation between his country and the global funding organization.

Baha El-Din has stressed that the core aim during the current phase is enlisting Egypt in EBRD’s operation countries, noting that such a transition shall make all the EBRD’s potentials more accessible for Egypt.

The meetings have notably tackled EBRD’s ongoing enterprises in Egypt in sectors of power, water, sanitation, transport, education and health.

In a statement to MENA news agency, the Egyptian minister said his meeting with the EBRD board of directors was crucial, noting Egypt has been founder member when the bank was established in 1991.

He added that EBRD was formed after the collapse of the Soviet Union to provide western financial assistance to Russia and Eastern European countries.

He explained that during the past years, the economies of those countries (Russia and Eastern Europe) grew and evolved to the extent that they do not rely on the EBRD’s financial assistance anymore; this prompted the bank to expand its financial aids to include countries around Europe.

He further pointed that Egypt is the most likeable candidate to become EBRD’s key partner in future development projects.  EBRD has established its Resident Office in Cairo endorsed by the Egyptian cabinet through the last few weeks.

The EBRD’s Resident Office in Cairo is designated for providing technical cooperation assistance to Egyptian private sector enterprises, he noted. The Resident Office represents EU’s arm to finance private-sector activities in Egypt in addition to provide financial assistance to the country’s infrastructure and utilities enterprises.

Moreover, Baha El-Din announced that Egypt has submitted an official request so as to become one of EBRD’s operation countries; such a step that would enable the cash-strapped North African country to obtain all the facilitations and support from the global lender.

The Egyptian minister has elaborated that before the outbreak of June 30 Uprising, the former government had started negotiations with the EBRD officials to become an operation country besides being a founder member. Yet, EBRD decided to halt the talks, citing political instability. The two parties have agreed on resuming talks after making a referendum on Egypt’s new constitution.

EBRD is currently in talks with the Egyptian private sector over the execution of several enterprises for the year of 2014 with total investments worth € 158 million, the minister further announced.

However, he said the Egyptian authorities have to exert more efforts to reassure the EBRD officials that Egypt is making progress towards implementing political stability, referring that the completion of the final draft on the country’s new constitution is a landmark step, but the most important now is to be followed by making the referendum.

It is worth to mention that EBRD is currently contributing in multiple enterprises in Egypt such as El Shabab Power Plant with US$ 165 million,  Damietta West Power Plant with US$ 25 million and Kafr El Sheikh Waste Water Treatment Project with US$ 55 million.

The Egyptian minister departed for London last Sunday for a two-day visit to discuss means of cooperation between EBRD and Egypt.