European Investment Bank Allocates €50 Mln For Egyptian Infrastructure Projects
The European Investment Bank aims at signing several contracts with Egypt to provide €50 million finance for small and medium enterprises (SMEs) as well as infrastructure projects before the end of 2012, said Tom Anderson, head of the Regional Office for the EIB in the Middle East.
The Minister of Planning and International Cooperation Asharf Al Araby signed an agreement with the French Development Agency (Agence Française de Développement, AFD) director Dov Zerah, the acting head of the Cooperation Department of the European Commission and Tom Anderson for providing foreign-currency segment of €940 million needed for constructing the third phase of the third metro line.
The French Development Agency contributes with €300 million to the loan for about 20 years with a grace period of 7 years and interest of 2.8%. The European Investment Bank contributes with €600 million for about 25 years with a grace period of 7 years and interest of 2.8%. Besides, the Neighbourhood Investment Facility (NIF) contributes with €40 million to the loan.
Egypt and the European Investment Bank have started their cooperative relationship since 1977 as the bank has contributed to the establishment of infrastructure projects, SMEs and energy projects, as the value of the cooperation portfolio reached about €5 billion.
