European Investment Bank, Egypt launch the second phase of community development programme

The European Union, the European Investment Bank (EIB), and the Egyptian government have launched on Monday the second phase of the Community Development Programme with a total financing of 111 million Egyptian pounds ($6.8 million).

The progamme was launched with Egypt’s Ministry of International Cooperation (MOIC) and the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), EIB said in a statement.

The Community Development Programme (CDP) aims at financing investments in community infrastructure to improve living standards for disadvantaged and vulnerable persons living in and around urban centres in several governorates in Egypt. The programme answers multiple Sustainable Development Goals (SDGs), including decent work and economic growth, industry, innovation, infrastructure and sustainable cities and communities.

In the framework of the second phase, MSMEDA signed framework agreements with five Egyptian governorates to support the provision and enhancement of community facilities, including drinking water networks, sewage networks, paving side roads with interlocking paving, schools, health clinics, and youth centres.

The CDP is funded by a €15 million grant from the European Union under the Neighbourhood Investment Facility (NIF) and is delegated to the EIB. It is implemented in two phases: phase one, worth 113 million pounds, which is focused on the projects to be completed by the end of 2020, while phase two worth 111 million pounds is focused on works that will be completed by the end of 2023.

Under phase two of the programme, MSMEDA signed framework agreements totalling EGP 111 million with five governorates. The projects under phase two will include the upgrade of 1.75 km of water supply networks in Assiut, the extension and upgrade of 32.1 km of sanitation networks services in Assiut, Giza, Port Said, and Sharkia. The improvement of side roads quality and safety in Assiut, Giza, and Alexandria, and upgrade of a local market in Alexandria.

“Investing in sustainable and resilient infrastructure is an investment in human capital and the productivity of our nation. The Ministry of International Cooperation continues working closely with the EU and the EIB to provide sustainability-focused and community-based solutions paving the way to inclusive and enabled economic growth.” International Cooperation Minister Rania Al-Mashat said.

“The two phases of the community development program with MSMEDA stimulate sectors that are labour intensive accelerating job creation and generating employment opportunities.”

Dario Scannapieco, EIB Vice President, commented on the launch of the second phase “As the EU bank, we continue to support a sustainable, modern economy in Egypt and to reinforce its economic resilience. The Community Development Programme is progressing in a very satisfactory manner.”

Ivan Surkoš, Ambassador of the EU to Egypt, said: “The European Union remains committed to supporting Egypt in its sustainable development goals under the Egypt Vision 2030 and in particular under the Urban Development Pillar.”

“With our partners EIB and MSMEDA, we are contributing to enhancing quality of life of the communities targeted under the Community Development Programme through tangible improvements in the municipal infrastructure of a number of cities across Egypt.”

“EU-Egypt partnership is concretely delivering and making collectively a difference at the ground level and we stand ready to increase our investment in the future to make the cities of Egypt and its inhabitants more resilient and prosperous.” Surkoš added.

Medhat Massoud, GM and head of the Human & Community Development Central sector at MSMEDA said: “the second phase of the Community Development programme comes as an important module and one of several programmes and projects managed by MSMEDA in full partnership with the European Delegation in Cairo and the EIB.”

“The programme is fully aligned with MSMEDA and the Egyptian government strategic objectives in supporting the enabling environment for the growth and development of the small and micro enterprise in the country.”

“While enhancing the living conditions in the targeted geographical areas, MSMEDA applies labour intensive methodology during the executing the community infrastructure sub-projects to generating the maximum employment opportunities. The list of sub-projects represents the targeted communities’ urgent priorities.”

Massoud added: “During the implementation phase one and two, the big challenge was how to protect the workers on the different sites at the various governorates against the spreading of Epidemic COVID-19, a guide was prepared by MSMEDA and disseminated to all the contractors and workers to abide with these high and conservative protective measures against COVID-19.”