The European Bank for Reconstruction and Development, EBRD, continues to take the lead in efforts to enhance renewable energy and low-carbon technologies in Egypt with the backing of a $ 275 million syndicated loan used to build and operate the largest wind farm in Africa. Located in the Gulf of Suez, it is an ambitious step by Egypt to shift towards renewables.

EBRD committed $200 million and Arab Bank, Standard Chartered committed $75 million of the $275 million loan for Suez Wind. Funding will drive Africa’s largest onshore wind farm, a 1.1 GW project advancing renewable energy and sustainable development.

Co-financing from International Partner

In addition to the EBRD, international development institutions that include the African Development Bank (AfDB), British International Investment (BII), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP) are co-financing the wind farm project. This wide coalition underscores the robust international commitment towards supporting Egypt’s energy sector transformation.

The Suez Gulf wind farm will be generating over 4,300 GWh per annum. First and foremost, it’s clean, renewable electricity besides providing support for a wide share of carbon footprint decreases in Egypt. The reduction is over 2.2 million tonnes of CO2 annually. Thus, the reduction fits well into Egypt’s target under the Paris Agreement.

Also read: EBRD Boosts Green Finance with Loan to Komercijalna Banka in North Macedonia

The EBRD plays a key role in Egypt’s Nexus of Water, Food & Energy programme, supporting the country’s sustainable development. Based on the plan announced last month at COP27, NWFE program aims for a reduction in fossil fuels usage in Egypt and speed it to low-carbon energy power sources. This wind farm program helps Egypt meet its renewables 10 GW target as presented by the end date for 2030, with Egypt’s Renewable Energy Vision.

In 2030, it plans to have 42% of its energy derived from renewables, in alignment with its commitments under the Paris Agreement.

Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, said “Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE programme, we are mobilising blended finance to attract private-sector investments in renewable energy.

She added, “So far, funding has been secured for projects with a capacity of 4.7 GW, and we are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

EBRD’s Key Role in Egypt’s Energy Transformation

Since 2012, EBRD has been very fundamental in Egypt’s energy sector. The bank has sponsored various projects in industries and infrastructure. To date, the bank has invested around €13.3 billion in 194 projects within Egypt.

The Asian Development Bank (ADB) has granted approval to provide a senior secured loan up to the worth of $70 million towards the Vastu Housing Finance Corporation Limited, popularly known as Vastu. This collaboration intends to enhance the availability of housing loans to the unprivileged groups across India. The amounts target economically weaker sections, low-income group’s particularly women, and First Home Buy-in customers. It helps bridge the housing void that exists in India

India has a massive housing shortage, requiring 45 million homes for the EWS and 50 million homes for the LIG population. High mortgage rates and short credit histories render it difficult for these families to access credit and ultimately secure homeownership. To solve that, the ADB-Vastu partnership will provide housing finance for currently underserved borrowers in the rural and semi-urban zones.

Suzanne Gaboury, Director General of ADB’s Private Sector Operations Department, said, “ADB aims to address the critical housing shortage in India while promoting environmentally friendly housing that enhances climate resilience for homeowners by focusing on lower-income households and sustainable housing.”

She added, “This partnership with Vastu illustrates ADB’s commitment to supporting financial inclusion and sustainable development in India, in alignment with the country’s national financial inclusion strategy.”

Also read: ADB and Australian Partners Invest $10 Million to Promote Sustainable Transport in Indonesia

Increasing affordable housing access

Vastu Housing Finance is a technologically-enabled affordable housing finance company that commands market presence in the semi-urban and rural markets. It lends to self-employed people and underprivileged sections of society, which consist of a growing middle class as well as low-income families.

Focus on Sustainability and Inclusion

This partnership also focuses on sustainable housing, increasing climate resilience and supporting broader sustainable development goals in India. This initiative aims at empowering the marginalized communities and increasing their financial access through Vastu and ADB.