Egypt - Nexus Water-Food-Energy (NWFE) – Energy Pillar: Incentive Payments

Overview
Project Summary Document

TCRS 21695

Status Approved

Location

Egypt

Business Sector

Energy

Notice Type

Public

PSD Disclosed

12 Jun 2025

Project Description

Egypt, with support from the EBRD’s High-Impact for Climate Action Fund and other donors, launched the Energy Pillar of the Nexus Water-Food-Energy Programme (NWFE-EP) in 2023. As a cornerstone of this initiative, Egypt aims to decommission 5 GW of outdated and inefficient fossil fuel power plants, thereby freeing up capacity for 10 GW of renewable energy and accompanying grid infrastructure investments. This strategy is designed to bolster energy security by replacing unreliable assets with resilient, high-performance facilities that enhance the stability and reliability of Egypt’s power system.

TCRS 21695

Status Approved

Location

Egypt

Business Sector

Energy

Notice Type

Public

PSD Disclosed

12 Jun 2025

Project Description

A critical element of this project is a USD 40 million package of grants, structured as Performance Incentive Payments (PIPs). These funds, governed by a legally binding agreement between the Bank, supported by international donors, and the Egyptian Electricity Holding Company (EEHC), are earmarked for meeting decommissioning milestones for retiring the underutilized capacity. The PIPs will be disbursed in tranches linked to specific targets under NWFE, ensuring accountability and progress.

Disbursement of the financial incentive payments will be made against defined milestones, along with defining the appropriate arrangements in place to monitor, verify and report the progress and achievement of the milestones that EEHC is required to meet. This will be primarily done by NWFE's Energy Pillar Technical Support Unit as well as EBRD.

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Egypt - Nexus Water-Food-Energy (NWFE) – Energy Pillar: Incentive Payments

Project Description

Project Description

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)