Lending and technical assistance FEMIP support for environmental projects in Egypt

Under its Facility for Euro-Mediterranean Investment and Partnership (FEMIP), the European Investment Bank (EIB), the EU’s lending institution, is providing EUR 40 million to enable mostly private but also public sector industrial companies to invest in pollution abatement measures. Geographically, the focus is on the greater Cairo and Alexandria areas, where more than 80% of the country’s industry is located, although industrial pollution abatement projects can be financed throughout Egypt. The funds, for this Egyptian Pollution Abatement Project, are advanced in the form of a global loan to the National Bank of Egypt (NBE), the country’s largest commercial bank, with strong market shares and branch network. The EIB funds will subsequently be on-lent in smaller portions by the NBE directly to corporates as well as Small and Medium-Sized Enterprises (SMEs), or though other commercial banks located in Egypt. The EIB global loan benefits from a EUR 10 million interest rate subsidy from the European Commission. The agreement was signed at the EIB headquarters in Luxembourg on 21 November 2006. The implementation of Egyptian Pollution Abatement Project is assured by the Egyptian Ministry of State for Environmental Affairs, and namely, through its Egyptian Environmental Affairs Agency (EEAA) over a 5-year period from 2007-2012.