CAIRO: Several soft loan, lease, deposit and grant agreements were signed by Egypt and participants at the Egypt Economic Development Conference (EEDC) Thursday-Friday, promising years of ambitious projects after four years of turmoil.
The Islamic Development Bank (IDB) has provided a $3 billion-loan to finance the import of petroleum products into Egypt over the next three years. The loan will be paid back in 19-20 years with a 3-4 year-grace period and a London interbank offered rate (LIBOR,) currently at 1.5 percent, according to Egypt The Future website.
The European Investment Bank signed a loan of $125.9 million in cooperation with the National Bank of Egypt to support small and medium-sized enterprises.
A power plant in Aswan, Upper Egypt, will be financed by the French Development Agency loan of $41.9 million.
Japan has provided a $58 million-loan to build seven aqueducts in Asyut, Upper Egypt, according to Irrigation Minister Hossam Moghazy. The loan is agreed to be paid back in 30 years with a grace period of 10 years at a yearly one-percent interest rate.
A Japanese company will carry out the project “at once,” Moghazy said, adding that the cost of the studies and engineering designs have been granted by the Japanese government.
Spanish Minister of Industry José Manuel Soria offered financing railway projects through soft loans that can be paid back in up to 30 years at an interest rate of two percent, Minister of Transport Hany Dahy told reporters on the sidelines of the EEDC Saturday.
The potential Spanish contribution includes converting single-track railways to bi-directional double tracks, single carriages, and increasing express and electrified railways.
Italian Minister of Economic Development Carlo Kalinda also met with Dahy, who said Italy offered to support railway project through funding and providing expertise.
Sponsor of EEDC, Emirates National Bank of Dubai (Emirates NBD) will contribute to the Suez Canal Development project through join loans, Emirates NBD deputy managing director Sahar Eldamaty told Al-Youm channel Friday.
Egypt has accepted a grant of $136.4 million from the European Union to support social and economic development. The grants are channeled in into access to education, child protection, expanding natural gas grids and wastewater units.
A grant of $23 million from the EU and $11.5 million from Italy has been allocated to the EU Joint Rural Development Program, which was officially launched Saturday to fund citizen-oriented projects.
The IDB will contribute $875 million in finance lease to the development of Sharm el-Sehikh Airport, Egypt-Saudi Arabia electricity linkage project, and Asyut oil refinery in Upper Egypt.
United Arab Emirates pledged $2 billion in deposits to the Central Bank of Egypt (CBE,) while Saudi Arabia pledged $1 billion and Oman will deposit $250 million over five years. The deposits, which would be paid back after five years at no interest, aim at enhancing liquidity at the CBE.