Egypt and Germany signed Friday a EUR-153-million (USD 174m) cooperation agreement to support projects related to renewable energy development, education, housing, and SMEs in Egypt, among other focus areas.
The amount includes EUR 100 million in soft loans with an interest rate of 2%, a 10-year grace period, and a 30-year repayment period, according to an official statement. The 2016-2018 cooperation agreement was signed in Berlin by Egypt’s Minister of International Cooperation Sahar Nasr and the German Minister of Economic Cooperation and Development Gerd Mueller.
At the Egyptian-German Joint Committee meeting, Nasr emphasised the importance of cooperation between the two countries in renewables, especially in solar power. Egypt will rely on Germany’s support for a 1-GW “top priority” solar project.
According to the press release, the German side will back Egypt’s solar plan with the establishment of an Egyptian-German company for the private sector, and by sending a German mission to Cairo, including representatives of the Federal Ministry of Environment, to discuss the project. The plan also envisages the Ministry of International Cooperation in Egypt and the Egyptian and German ministries of environment working together to prepare the solar project through securing funds from the Green Climate Fund (GCF).
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