The German Development Bank (KfW), on behalf of the German Federal Ministry for Economic Co-operation and Development (BMZ), signed a debt swap agreement with the Ministry of International Cooperation, the Ministry of Electricity and Renewable Energy and the Central Bank of Egypt. This agreement exempts Egypt from paying debts of €54 million to finance the transition to green energy instead.
The German government pledged during the COP27 International Climate Conference in Sharm el-Sheikh in November 2022 to contribute significantly to Egypt’s initiative Water, Food and Energy (NWFE-EP).
In line with this event, Germany has provided a total financing package of more than €250 million for the same purpose with grants and soft loans.
This debt swap supports the Egyptian government in achieving its goal of producing electricity from renewable energy sources by 42 per cent by 2030, by financing investments that pave the way for this important initiative.
The purpose of the project is to develop the transmission network to integrate renewable energies into the electricity transmission network and to strengthen the network. In particular, the project contributes to the construction of two substations and the connection of two wind farms (Amiunt Farm and the Red Sea wind farm).
The project will be implemented by the Egyptian Electricity Transmission Company.
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