The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors approved its first sovereign loan to the Egyptian government for USD300 million to improve rural sanitation services for 892,000 people in 178,000 rural households in selected governorates in the country.
Under the program, AIIB will finance the physical infrastructure to provide sanitation services in five governorates in Egypt, including Dakahliya, Sharkiya, Damietta, Menoufiya and Gharbiya. This program is co-financed with the World Bank.
“Women will benefit substantially from this program because it will help relieve them of the traditional burden of care for family members suffering from waterborne and contamination-related illnesses,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “Access to better sanitation also helps to reduce poverty and minimize environmental pollutants. This is well aligned with AIIB’s mandate to help its members achieve their commitments under the Sustainable Development Goals.”
AIIB is investing in the second of a two-phase program, which will include:
- Construction of new or expansion/rehabilitation of existing wastewater treatment plants.
- Upgrading and construction of pumping stations.
- Construction of integrated sewerage networks consisting of collectors and pumping mains.
- Ensuring services for inhabitants of “satellite” areas located between the villages where the main sewers will pass.
“The program will directly contribute to the socioeconomic development of Egypt by addressing the issues of low sanitation coverage and environmental degradation,” said AIIB Director General of Investment Operations Supee Teravaninthorn. “It will also enhance knowledge sharing between AIIB, the World Bank and the Government of Egypt.”
This is AIIB’s second investment in Egypt, bringing its total commitments up to USD510 million.
Additional information about the project can be found at here.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 87 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.