Abou Ghaly Motors - Electric vehicles



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

19 Jul 2022



PSD disclosed:

17 Jun 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a senior loan of up to EGP 187.4 million (ca. EUR 9.5 million) to Abou Ghaly Motors ("AGM" or the "Company") to support acquisition of Range Extended Electric Vehicles ("REEVs") to be operated as private taxis as part of the Company's London Cab Egypt services and support the development of the e-mobility transport sector in Egypt. The Project is expected to have a strong demonstration effect, for both the public and private investors in the transport sector. 

Project Objectives

The objective of the Project is to support AGM's operational expansion along a low carbon transition pathway through the purchase of REEVs, which is expected to have a positive demonstration effect for electric mobility in both the public and private sectors in Egypt.

Transition Impact

ETI score: 74

The primary transaction impact of the Project is Green as it supports the Company's expansion in transport provision along a low carbon transition pathway following the acquisition and operation of range extended electric vehicles, which are expected to contribute to lower GHG emissions, better air quality, and reduced dependence on petroleum based transportation as compared to the baseline.

The secondary transition impact of the Project is Inclusive as it further supports skills development in the e-mobility sector and supports the delivery of safe and more accessible transport for women and people with disabilities. 

Client Information


The Borrower is AGM, a provider of transport solutions in the Egyptian market since 1981. AGM is currently active in car distribution as well as transportation services through their (i) car rental service as a franchisee of Sixt Rental since 2003 and (ii) London Cab service, which provides taxi services that are different in nature to conventional taxis, as well as ride-hailing providers since 2010. The Company's business model is based on owning and operating their own fleet, hiring and training drivers to the highest standards, and fully automating operations and control software platform.

EBRD Finance Summary

EGP 187,400,000.00

Senior loan of up to EGP 187.4 million, equivalent to around EUR 9.5 million, expected to be complemented by a EUR 3 million of grant funding from the High Impact Partnership on Climate Action (HIPCA), and is expected to benefit from an EU EFSD guarantee.

Total Project Cost

EGP 343,331,647.00

The total Project Cost is EGP 345 million (EUR 17.5 million)


EBRD's involvement is considered additional in terms of:

(i) financing structure as the EBRD loan is intended to be complemented by an investment grant to enable realisation of a high capital intensive transaction that is expected to have considerable environmental benefits and strong demonstration effect;

(ii) risk mitigation as the Project supports the Company's expansion along a low carbon transition pathway; and

(iii) standard-setting as the Project introduces higher environmental standards by making use of EBRD expertise and also supports delivery of safe and accessible transport services to women and people with disabilities and training activities relevant to the growing electric vehicle market in Egypt. 

Environmental and Social Summary

Categorised B under the Environmental and Social Policy (ESP) 2019. The Project consists of the purchase of 250 REEVs to be operated as private taxi as part of the Company's London Cab Egypt services. The Project will support development of the e-mobility transport sector in Egypt and will have environmental and social benefits, resulting in improved air quality and overall safety and efficiency of urban transportation in the cities they will operate. Any potential adverse environmental and social impacts will be site-specific and manageable through implementation of the targeted mitigation measures. The Environmental and Social Due Diligence ("ESDD") including a supply chain risk assessment, has been undertaken by an independent consultant and informed the preparation of specific mitigation measures. The ESDD consisted in developing of environmental and social questionnaires by the consultant and answered by AGM, visits to the project sites and meetings with the Company's management and their environmental and social staff. It also reviewed the Company's policies, procedures, and practices related to environmental and social matters as well as an assessment of the Company's capacity to manage key risks associated with the project in accordance with ESP 2019. 

Key risks identified by the preliminary ESDD findings are related to occupational health and safety, labour conditions for workforce, road and traffic safety, electric safety and fleet management related risks. The taxi services may be associated with gender-based violence and harassment (GBVH) risks, and therefore appropriate mitigation measures have been included in environmental and social action plan (ESAP) including the introduction of the emergency button to the company's taxi app and training taxi dispatchers on GBVH-focused response. The preliminary ESDD findings indicate that the Company is generally compliant with the local regulations and has the capacity to implement the Project in line with the Bank's performance requirements. At the same time, improvements are required in terms of its overall environmental, social, and safety management systems to bring the Project into compliance with the EBRD performance requirements. Given that the road and traffic safety has been identified a serious concern during ESDD, the Bank will expect the client to develop and implement a traffic and road safety management system that will align with good international practice and ISO 39001. The company will also manage supply chain risk linked to EVs by developing and adopting a supply chain management system and including legal provisions related to traceability requirements in agreements with the EV supplier. Specific mitigations related to supply chain management will be included in ESAP and loan agreement.  

Targeted mitigation measures have been developed in form of environmental and social action plan and include commitments aimed at improving traffic safety practices, fleet management procedures, COVID-19 related risk management, a code of conduct for the drivers and GBVH procedures, a stakeholder engagement plan, labour management system, and a grievance review system.

ESAP is under consideration by the Client and will be agreed with the Client prior to signing.

The project is consistent with the GET approach and the GET share is 100%. The project is considered Paris aligned for climate mitigation as it features in the joint MDB aligned list.  The project is deemed not significantly exposed to physical climate risks and is considered Paris aligned. The PC risk score of the project is 1. The CART is considered to be low risk as it is sufficiently diversified based on the geographical spread of its operations.

The Bank will monitor the Company's activities through annual E&S monitoring reports.

Technical Cooperation and Grant Financing

A. Technical Cooperation (TC)

Pre-signing TC assignment on Market, Technical and Environmental Due Diligence required for the Project preparation, with the funding provided through the Technical Assistance allocation of the EFSD Municipal, Infrastructure and Industrial Resilience Guarantee Programme. 

Post Signing TC 

  1. EV Training and Inclusive Capacity Building

Technical Assistance will be provided to enhance skills for technical engineers, as well as drivers in the Company. The support will map the Company's training needs and support the development of the training programmes in partnership with local vocational schools and the Original Equipment Manufacturer ("LEVC"). The TC will support the Company in finding the right skills, especially female, through partnerships with relevant NGOs. The estimated costs of the assignment is up to EUR 75,000 to be financed under the Gender and Economic Inclusion TC Framework and expected to be supported by a cash contribution from the client.

B. Co-investment grants / Concessional Finance (Non-TC) 

The EBRD loan is expected to be complemented by a EUR 3 million grant from HIPCA necessary to complement the financing mix for a highly capital intensive investment plan. The Project supports the first widespread use of e-vehicles in transport services in Egypt and is expected to have strong demonstration effect in the Egyptian e-mobility sector.

The loan will be supported by an EU EFSD Guarantee and will benefit from a net EU guarantee cover of 20%. 

Company Contact Information

Viviane Nosseir
AGM HQ, KM28 Ismailia Desert Road, Cairo, Egypt

PSD last updated

30 Aug 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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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