Minister of Planning, Economic Development and International Cooperation Signs the PSD-EDSP II with the African Development Bank, Worth USD 170 Million, and a Grant of USD 400,000 to Enhance Sustainability at the Abu Rawash Wastewater Treatment Plant

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, and Mr. Abdourahmane Diaw, Country Manager of the African Development Bank (AfDB), signed the agreement for the second phase of the Private Sector Development and Economic Diversification Support Program (PSD-EDSP II), aimed at supporting the state budget and advancing the implementation of structural reforms, with a value of USD 170 million. The signing also included a grant agreement worth USD 400,000 (equivalent to EGP 19 million) to advance sustainability at the Abu Rawash Wastewater Treatment Plant. The signing ceremony was attended by Dr. Yasser Sobhi, Deputy Minister of Finance, and Dr. Sayed Ismail, Deputy Minister of Housing.

This comes within the framework of the efforts undertaken by the Ministry of Planning, Economic Development and International Cooperation, in coordination with national entities, to maximize economic relations with multilateral development partners and to achieve integration between external financing and national efforts to implement the National Structural Reform Program, within the targets of Egypt’s Narrative for Comprehensive Development.

H.E. Dr. Rania Al-Mashat reaffirmed the depth of the long-standing strategic partnership between the Government of the Arab Republic of Egypt and the African Development Bank, which has played a pivotal role in supporting comprehensive and sustainable development efforts in Egypt and contributing to progress across priority sectors, including water and sanitation, structural reforms, and transport. She explained that the agreement comes as part of broader government efforts with various partners to mobilize concessional financing to support the state budget, expand fiscal space for spending on human development programs, and advance the implementation of structural reforms.

H.E. Dr. Rania Al-Mashat also highlighted the strong role of the African Development Bank in supporting the private sector, noting that private-sector-directed financing operations in 2025 were three times higher than government operations, reflecting strong confidence in Egypt’s growing economy. She mentioned that this underscores Egypt’s openness and readiness for new partnerships and foreign investments that can drive innovation, sustainable growth, and long-term development.

The second phase of the Private Sector Development and Economic Diversification Support Program builds on the Phase I (PSD-EDSP I), which was approved by the House of Representatives in December 2024, with a value of USD 131 million.

In a related context, the Minister of Planning, Economic Development and International Cooperation pointed to the importance of the grant directed to the Abu Rawash Wastewater Treatment Plant, which is one of the largest wastewater treatment plants in the world. The cooperation with the Bank aims to enhance environmental sustainability at the plant and improve operational efficiency.

Last May, the government signed an agreement with the African Development Bank to finance the fourth phase of the Abu Rawash Wastewater Treatment Plant, which aims to increase the plant’s treatment capacity from 1.6 million cubic meters per day to 2 million cubic meters per day. The project benefits approximately 8.6 million residents of Giza Governorate and contributes to maximizing the use of water resources, enhancing public health and environmental sustainability, providing water suitable for agriculture, and protecting ecosystems.

It is worth noting that the Ministry of Planning, Economic Development and International Cooperation previously announced that concessional financing to support the state budget over the three-year period from 2023 to 2026 amounts to approximately USD 9.5 billion, aimed at strengthening the structural and economic reforms implemented by the state to support macroeconomic stability, improve the business and investment climate, and stimulate the transition to a green economy.

H.E. Dr. Rania Al-Mashat Signs the PSD-EDSP II with the African Development Bank