The European Investment Bank (EIB), the financing
institution of the European Union (EU), is granting a
loan of
EUR 50 million(
1)
to the Government of the Arab Republic of Egypt for part
financing a new drainage programme in the Nile Valley and
Delta regions. The loan is made available under the
second Euro-Mediterranean Partnership mandate and, given
the project's environmental orientation, will benefit
from an interest subsidy financed from the Community
Budget.
The project includes the provision of new sub-surface
drainage and rehabilitation of old drainage systems for a
total of 330 000 ha of agricultural area, as well as the
deepening and remodelling of open conveyance drains
serving some 150 000 ha of irrigated lands. The promoter
is the Egyptian Public Authority for Drainage Projects
(EPADP), an organisation responsible -under the Ministry
of Water Resources and Irrigation- for implementing,
maintaining and operating surface and sub-surface
agricultural drainage systems in Egypt.
The project is essentially driven by environmental
objectives. It aims at protecting and enhancing the
environment of the cultivated area of the Nile Valley and
Delta, and rationalise the use of scarce water resources
for agricultural purposes. Good water and land-use
management is key to sustainable rural development in
Egypt, safeguarding the well-being of the large rural
population by protecting scarce arable land and water
resources. The project will help modernise agriculture,
improving crop yields and therefore farmers' income.
This operation involves a coordinated European and
multilateral donor preparation and financing, with the
Egyptian Government Budget contribution being
complemented by long-term loans from the EIB, the World
Bank and the German Government (through KfW), while the
Dutch Government will be providing technical assistance.
Total EIB financing since 1978 in Egypt
amounts to some EUR 1.5 billion. Particular
emphasis is being given to supporting industrial
development, through financing large scale
industrial schemes, as well as global loans to
the Egyptian banking sector for on-lending to
small and medium sized enterprises investing in
medium to long term productive projects. Economic
and public infrastructures have largely benefited
from EIB funding.
For further information, please contact
the EIB's Information and Communications Department (Mrs Helen Kavvadia, tel.: +352 43
79 31 46, e-mail: h.kavvadia@eib.org).
(1) Conversion rates:
EUR 1 = 0.666300 GBP, 4.01325 EGP, 1.16675
USD
