The EBRD has received €38 million in grants from the European Union (EU) to blend with its own investment of €186 million in the extension and upgrade of wastewater services in the Egyptian governorate of Fayoum, where three million people live. This investment will bring sanitation services to one million people for the first time, connecting their households to the wastewater network and the wastewater plant. The investment will raise the coverage of sanitation services in rural areas from currently just over 30 per cent to almost 90 per cent.
The EBRD financing to the Fayoum Water and Wastewater Company is complemented by an EU grant investment grant of €30 million and over €7 million for technical assistance. In addition, the European Investment Bank is providing a loan of €172 million.
Ambassador Ivan Surkoš, Head of the EU Delegation to Egypt, said: "The EU cooperation with Egypt in the water sector is one of our main pillars of intervention, stretching over a wide portfolio of programmes covering 12 Egyptian governorates, offering direct grant funds for a total amount of nearly €425 million, while leveraging additional funds for nearly €2.1 billion in investments since 2007."
Janet Heckman, EBRD Managing Director for the southern and eastern Mediterranean region and Head of the Bank’s operations in Egypt, said: “We are very grateful for the EU’s support of this crucial project which will improve people’s lives and help preserve the environment. Both investment and technical cooperation grants add strength and impact to the operation which will result in significant economic and social benefits.”
The funding will support the construction of eight new wastewater treatment plants, the expansion of nine units and the rehabilitation of 10 plants as well as the installation of over 3,400 kilometres of pipes and 139 pumping stations. In addition, 350 sewage removal trucks will be procured to serve remote rural communities.