Recognition for project partners as EgyptSEFF is successfully being completed
The EBRD’s Egypt Sustainable Energy Financing Facility (EgyptSEFF), implemented by National Bank of Egypt (NBE), has recognised the best projects to highlight the successful completion of the pilot programme.
The awards were presented today to 11 projects at an event in Cairo hosted by NBE in its headquarters. The event was attended by representatives of NBE and the EBRD as well as awarded companies and their NBE relationship managers.
Launched in December 2014, EgyptSEFF was the first EBRD credit line fully dedicated to energy efficiency and renewable energy investments in Egypt. A US$30 million loan with NBE as partner served as a first pilot before launching a larger programme. The EgyptSEFF portfolio included projects covering a wide range of energy intensive sectors, including agribusiness, glass, chemicals, plastics, paper and energy generation.
The results demonstrated the vast potential for energy efficiency with tangible positive impact on the environment as the projects will save 566 GWh of energy and reduce CO2 emissions by 93.000 tonnes annually.
The pilot represents the beginning of the operations of a new Green Economy Financing Facility (GEFF) programme of the EBRD, which at the first stage will have a volume of up to €140 million. The goal of the programme is to provide loans for energy efficiency and small-scale renewable energy investments by private companies through a group of participating banks with the aim of improving companies’ competitiveness and also achieving energy security.
"Egypt needs thousands of responsible companies to take the lead in sustainable energy investments" said Mr. Hazem Hegazy, CEO of Retail and SMEs, the National Bank of Egypt. He added: "we partnered with the EBRD on the Pilot EgyptSEFF with US$ 30 million as they have an excellent know-how of financing the sustainable energy sector".
Ian Smith, EBRD Associate Director, Head of Intermediated Finance and Policy, said: “Today’s awards recognise some of the best commercial decisions to improve the resilience and competitiveness of Egyptian businesses. Together with NBE we have demonstrated the business case for investing in higher performing technologies that also help reduce greenhouse gas emissions. Investment opportunities have been identified throughout the country by highlighting technological solutions and the benefits that can be achieved. As a result, the EBRD is now ready to roll out this model throughout Egypt.”
In addition to providing multicurrency loans worth up to US$5 million per project, EgyptSEFF also offered free technical assistance and investment incentive grants to assist Egyptian businesses in improving their competitiveness while coping with growing energy costs.
The programme received donor support by the EBRD Shareholder Special Fund and the Southern and Eastern Mediterranean Multi-Donor Account. The funds provided US$5 million for incentive payments and €1.5 million for technical assistance. The donors of the Southern and Eastern Mediterranean (SEMED) Multi Donor-Account are: Australia, Finland, France, Germany, Italy, the Netherlands, Norway, Sweden, Taipei China and the United Kingdom.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested €2.7 billion in 51 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services and support for transport services. The Bank has also provided technical assistance support to more than 500 small and medium-sized local enterprises.