Egyptian cabinet approves AFESD, China loans for development projects

The Egyptian cabinet approved a soft loan agreement between Egypt and the Kuwait-based Arab Fund for Economic and Social Development (AFESD) to assist in financing the construction of the Bahr El-Baqar Water Drainage System Project.

The approval of the loan, worth 70 million Kuwaiti dinars (EGP 4.1 billion), came during a meeting Tuesday night chaired by Prime Minister Mostafa Madbouly.

The project, set to be completed by 2022, is part of the government's sustainable development goals of achieving clean water and sanitation by increasing the efficiency of water use in the agricultural sector.

The government plans to develop and urbanize the Sinai peninsula by transporting and treating Bahr El-Baqar drainage water.

The new treatment plant facility will be constructed east of the Suez Canal and consist of civil and mechanical facilities to divert about 5 million cubic meters per day of drainage water.

The project will contribute to the environmental protection of Manzala Lake and create about 100,000 jobs, while reclaiming 330,000 acres of agricultural lands, in addition to the 70,000 acres that are currently cultivated.

The cabinet also approved a draft law on a soft loan worth 40 million Kuwaiti Dinars (EGP 2.3 billion) extended by AFESD to contribute to the construction of the second stage of the electrical power grid.

The project will meet the electricity needs of areas with growing power loads by expanding and upgrading the electricity transmission network and constructing new transmission stations.

The cabinet also approved a presidential draft law on a framework loan agreement between Egypt and China worth about 4.604 billion yuan ($739 million) for an electric train to serve the new cities east of Cairo and the New Administrative Capital.

The cabinet further approved a fourth presidential draft law on technical and economic cooperation agreement between Egypt and China to obtain a 350 million yuan interest-free loan to complete the electric train project.