France

French public aid is channelled through two Ministries: Ministry of Foreign Affairs/Centre Français pour la Culture et la Coopération (CFCC) for the non-profit development partnership and Ministry of Economy, Finance and Industry/Mission Economique in Cairo/Regional Treasury Agency for the economic and financial market oriented co-operation, including French firms.These two lines of action are co-ordinated under the umbrella of the French Ambassador in Cairo.

The co-operation for culture, education and development is driven by the French Cultural and Co-operation Centre (CFCC). As far as the Ministry of Foreign Affairs (MAE) is concerned most part of the bilateral assistance in the world goes to a limited number of countries, listed in a so-called ZSP (Zone de Solidarité Prioritaire) area. In the Middle East region, Lebanon and the Palestinian Authority are included in the ZSP (like Sudan, Ethiopia or Yemen). Egypt is not and consequently, cannot take benefit of the grants of the FSP (Fonds de Solidarité Prioritaire) and /or the grants from AFD (French Agency for Development).

Objectives of French co-operation with Egypt are summarised in a strategy paper and a bilateral Agreement (the last one in 2001). MAE projects are implemented through the CFCC (French Centre for Culture and Co-operation) on an annual "Programmatic" budget basis. The main effort is dedicated to education, by the way of technical assistance: support to primary and secondary bilingual schools (French and Arabic), to university bilingual departments (University of Cairo, University of Ain Shams), to the launching of a private French University of Egypt, etc. CFCC has also in charge, by means of missions or invitations of experts, the current "non profit" bilateral co-operation in fields like sciences, development (agriculture, environment, health, urbanisation, etc.) and culture (Alexandrina, events, grants, etc.). The functional annual expenses for the CFCC was €58 million in 2002, excluding the salaries of permanent staff in Egypt directly paid by MAE in Paris.

Complementary to this "regular" co-operation, some other actions could be implemented through specific financial assets, generally coming from counterpart programmes, under the financial control of the French Regional Financial Mission: either as a debt counterpart agreement, or as an alimentary aid counterpart programme. For instance, in 2002, €56 million have been channelled through FSD for Technical and Vocational Education and Training (TVET) and Health programmes support, as a counterpart of debt refunding by the Egyptian government. On a more regular basis, the Egyptian-French alimentary support counterpart programme, driven by the "BLAFE" (Bureau de Liaison Agricole Franco-Egyptien), disbursed into the same year 22 million Egyptian Pounds (a tighten assistance) for various agricultural development programmes. BLAFE is a bilateral body, run by the Egyptian Ministry of Agriculture and the French Embassy (CFCC + Mission Economique).

The financial tools for economic co-operation are driven by the French Ministry of Economy and Finance in Cairo, through the Economic Mission and the Regional Financial Mission.

The first one is the "FASEP études", which aims at financing 3 kinds of projects:

• Up-stream studies
  
• Technical assistance
  
• Institutional co-operation.
  

The FASEP covers grant-only facilities available for services provided by French consultants or companies. All the economic sectors (except for defense) are eligible for FASEP.

The main selection criteria for the different projects are:

• a strong development impact for the beneficiary country;
  
• a request from the local authorities;
  
• the sustainability of the project, which means a sufficient financing scheme (including other public, private, bi/multilateral financing) and the involvement of local authorities;
  
• related to French technology and know-how.
  

The second instrument is called RPE (Réserve Pays Emergents), a soft-loan instrument Egypt and other emerging countries are eligible for. RPE was set up in 1998, when France decided to reform its financial protocols. Whereas, in the past, when French aid was based on country credit lines decided on an annual basis, a project-oriented assistance was adopted. Each project gives rise to the negotiation and the signature of a specific protocol, after being assessed by an independent expert. Projects must comply with OECD guidelines.

The main goals of this instrument are:

• strategic projects with strong leverage on local development;
  
• upon request on borrowing authorities;
  
• related to French technology and know-how;
  
• facilitation of co-financing schemes with other donors (World Bank, regional banks, bilateral donors).
  

Status of Ongoing Projects
(financed with soft loans or grants, according to OECD rules).

Water Treatment Plant for Power Plant
Commitment: €2 million
Beneficiary: Ministry of Energy & Electricity
Objectives: Construction of a Waste Water Treatment Plant for power stations in Kafr El Dawar and Abou Sultan

Potable Water Plant
Commitment: €14.6 million
Beneficiary: NOPWASD
Objectives: Creation of Potable Water Plant in Badrashein

Electrical Plant El Lahun
Commitment: €3 million
Beneficiary: Ministry of Energy & Electricity
Objectives: Construction of an Hydroelectrical Power Plant in El Lahoun

Technical Assistance Waste Water Plan
Commitment:€1.5 million
Beneficiary: Cairo Wastewater Organisation
Objectives: Technical Assistance for the treatment of Waste Water in the eastern parts of Cairo

Extension of Tebbin Potable Water Plant
Commitment: €12.2 million
Beneficiary: Ministry of Housing
Objectives: Extension of Potable Water Plant of En Tebbin

Extension of 10^th of Ramadan Potable Water Plant
Commitment: €11.4 million
Beneficiary: Ministry of Housing
Objectives: Extension of Potable Water Plant of 10^th of Ramadan

Extension of Beni Suef Potable Water Plant
Commitment: €9.3 million
Beneficiary: Ministry of Housing
Objectives: Construction of Potable Water Plant in Beni Suef

Supply of Boiler for Energy Conservation
Commitment: €2.3 million
Beneficiary: EGYPTALUM
Objectives: Supply of Boiler for energy conservation project for Output Gases of CalciNational Authority for Tunnelsion Unit

Extension of Fustat Potable Water Plant
Commitment: €13.7 million
Beneficiary: Ministry of Housing
Objectives: Extension of Potable Water Plant in Fustat

Waste Water Treatment Plant
Commitment: €53.4 million
Beneficiary: Cairo Wastewater Organisation
Objectives: Construction of the second phase of Gabal El Asfar treatment plant for Waste Water

Renovation of Turbotrains
Commitment: €11.7 million
Beneficiary: Egyptian National Railways
Objectives: Renovation of the rolling parts of the turbotrains

Pumping Station in Kom Ombo
Commitment: €12.2 million
Beneficiary: Ministry of Irrigation
Objectives: Construction of a pumping station in Kom Ombo

Electrical Substation
Commitment: €2.1 million
Beneficiary: Ministry of Energy & Electricity
Objectives: Implementation of a substation for the electrical distribution in Wadi El Faregh

Renovation of Catenaries of Cairo Metro
Commitment: €9.9 million
Beneficiary: National Authority for Tunnels/Egyptian National Railways
Objectives: Renovation of the catenaries of Cairo Metro - Line 1

Shubra El Kheima Water Plant
Commitment: €7.6 million
Beneficiary: Ministry of Housing
Objectives: Extension of the potable water plant of Shubra El Kheima

Modernisation of Aeronautical Transmission System
Commitment: €2.1 million
Beneficiary: Ministry of Civil Aviation
Objectives: Completion of the modernization of National Authority for Tunnelsional Air Information System

West Delta Dispatching
Commitment: €18.3 million
Beneficiary: Ministry of Energy & Electricity
Objectives: Construction of an Electricity dispatching in Delta

Renovation of Railways Workshop
Commitment: €10.7 million
Beneficiary: Egyptian National Railways
Objectives: Renovation of railways Workshop of Abasseya

Waste Water Treatment Plant
Commitment: €34.3 million
Beneficiary: AGOSD
Objectives: Construction of waste water treatment plant in the west of Alexandria

Alexandria Library
Commitment: €5.9 million
Beneficiary: Authority for Bibliotheca Alexandrina
Objectives: Realization of the information systems

Study for Cairo Metro
Commitment: €3.4 million
Beneficiary: National Authority for Tunnels
Objectives: Technical Assistance for the design of Metro - Line 3