Germany

Technical and financial development co-operation in Germany is the responsibility of the Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (Federal Ministry for Economic Co-operation and Development – BMZ). Implementation of aid is mainly subcontracted to two autonomous institutions: The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH and the Kreditanstalt für Wiederaufbau (KfW). There are also other institutions in charge of implementation of aid.

The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) is a service enterprise for development co-operation with worldwide operations. GTZ supports development and reform processes on behalf of other German ministries, partner country governments and international organisations and institutions, such as the EU, UN and World Bank.

The Kreditanstalt für Wiederaufbau (KfW) is the bank for the German economy and a development bank for the developing countries. Its capital is held 80 percent by the Federal Republic and 20 percent by the Federal Länder. KfW finances investments in developing countries on behalf of the German Federal Government.
The development policy of the Federal Republic of Germany pursues the following goals in the development assistance with Egypt:

• Creating decent living conditions and reducing poverty;
  
• Promoting human rights, basic democratic principles, peaceful conflict resolution and
  gender equality;
  
• Promoting a global ecological balance; and
  
• Promoting economic development and co-operation in and with partner countries.
  

General Forms of Co-operation

 The BMZ is active in numerous fields of development work (e.g. poverty and human rights, the developing countries’ foreign debt, population and health, food and agriculture, the private sector and the financial system, global environmental protection and the sustainable use of resources). To these may be added bilateral official financial and technical co-operation and non-governmental co-operation work, multilateral co-operation and the development co-operation of the European Union.

GTZ: Assistance is provided through experts and managerial personnel in projects and GTZ offices. It also advises organisations in partner countries on Programme planning and implementation, evaluation, planning, organising and implementing project-orientated training and updating; and planning and procurement of materials and equipment for the projects.

KfW: KfW appraises projects and programmes, monitors the implementation of the projects, ensures the proper financial handling, and conducts final performance reviews. Assistance is given by long term loans, grants and project-related advisory services.

Status of Ongoing Projects

Participatory Urban Upgrading of Manshiet Nasser II
Commitment: €8.69 million
Beneficiary: Cairo Governorate
Objectives: The objective is to contribute towards improving the living conditions of the mostly poor inhabitants of Manshiet Nasser, an informal poor area in Cairo, through the improvement of the social and economic infrastructure including a safe supply of drinking water, proper sewage disposal, rehabilitation of vocational training centres, improvements of roads, etc. A major feature is that the project planning is conducted with the participation of the inhabitants in order to ensure that decisions are not made above their heads.

Small and Medium Enterprise Promotion
Commitment: €30 million
Beneficiary: Commercial banks
Objectives: The project aims to contribute to the competitive ability of small and medium industrial and commercial enterprises and therefore to safeguard and create jobs in regard with the envisaged foundation of a European-Egyptian free trade area. Efficient SMEs are to be modernised and international standards of production are to be adapted.

Job Creation Scheme Urban Infrastructure
Commitment: €3.1 million
Beneficiary: Cairo Governorate
Objectives: The project aims to make a contribution towards crisis prevention by improving the living conditions of the mostly poor inhabitants of urban overcrowded areas and fighting the great unemployment rate.

Participatory Urban Development Boulak El Dakrour
Commitment: €3.25 million
Beneficiary: Giza Governorate
Objectives: Mechanisms and practices of urban management in Boulak El Dakrour take into account the needs and capacities of the residents and local institutions.

Seed Certification
Commitment: €6.2 million
Beneficiary: Ministry of Agriculture and Land Reclamation
Objectives: Rules and procedures complying with international standards and protection conventions are adhered to by Central Administration Seed Certification and other relevant actors.

Improvement of Citrus Production
Commitment: €3.5 million
Beneficiary: Ministry of Agriculture and Land Reclamation
Objectives: Production and quality control of citrus planting material follow procedures that comply with international standards and conventions.

Cotton Sector Promotion Programme
Commitment: €11.1 million
Beneficiary: Ministry of Agriculture and Land Reclamation
Objectives: The cotton production community is enabled to make use of Egypt’s comparative advantage in Extra Long Staple and Long Staple production

Integrated Pest Management
Commitment: €8.9 million
Beneficiary: Ministry of Agriculture and Land Reclamation
Objectives: Integrated Pest Management is carried out on a sustainable basis.

Support to Self-help Local Initiatives in Urban Poor Areas
Commitment: €1.1 million
Beneficiary: Different NGOs
Objectives: Self-help initiatives of local community groups are supported by public and private stakeholders in order to improve conditions in urban low-income settlements.

Participation-oriented Urban Development in Manshiet Nasser
Commitment: €3.8 million
Beneficiary: Cairo Governorate, NGOs and CDAs in the area
Objectives: Initiating the development of the informal areas of Manshiet Nasser on the basis of the adopted and tested model of the participation-oriented urban upgrading in Ezbet Bekhit according to the experiences gained from this process.

Training System in Egypt (Mubarak–Kohl Initiative)
Commitment: €20 million
Beneficiary: Ministry of Education & Investors’ Associations and Private Entrepreneurs
Objectives: The partners involved in the implementation of the co-operative (dual) system (DS) undertake practice-oriented initial and further vocational education & training. This is part of Technical Education and Vocational Training (TVET) system based on the actual and future demand of the Egyptian economy. It integrates the DS in the national system of TVET.

Introduction of a Co-operative (Dual) Technical Education and Vocational Training System in the Building and Construction Sector in Egypt
Commitment: €1.4 million
Beneficiary: Ministry of Education, The Egyptian Federation of the Building and Construction Contractors 
Objectives: A co-operative (dual) system for the building and construction occupations is developed, introduced and practised in the pilot locations as a model, and available for the national dissemination of the system.

Participatory Urban Development Programme
Commitment: €2.7 million
Beneficiary: Ministry of Planning & Network of NGOs
Objectives: Action Concepts for participatory planning and urban management are known and applied by mediators and target groups.

Solid Waste Management in Aswan
Commitment: €6.8 million
Beneficiary: Aswan Governorate
Objectives: To enable the Governorate of Aswan to ensure the provision of an efficient solid waste management with community and private sector participation.

Programme of Qualifying Technicians and Technical Trainers
Commitment: €2.5 million
Beneficiary: Ministry of Industry and Technological Development
Objectives: Demand-oriented qualifications are offered by Technology Competence Centre and Staff Training Institute. They include initial and further training for technicians, instructors, and other vocational training specialists and management staff in Egypt and countries of the region (Middle East and North Africa).

Adapted Waste Water Disposal Schemes in the Governorate of Kafr El Sheikh
Commitment: €2 million
Beneficiary: Kafr El Sheikh Water and Sewerage Company
Objectives: The population and the responsible institutions accept hygienicharmless appropriate “low-cost” wastewater disposal possibilities.

Water Supply/Sewage Disposal Kafr El Sheikh
Commitment: €109.7 million
Total Disbursement: €62.5 million
Beneficiary: National Organisation for Potable Water and Sanitary improve the organisation and operations Drainage, Kafr El Sheikh Water and Sewerage Co.
Objectives: The projects are to help improve the health conditions for the population in the Governorate of Kafr El Sheikh by supplying adequate quantities of safe drinking water and at the same time to contribute to improving the situation of environment. Complementary measures financed from the Financial Co-operation funds are implemented by the participating Egyptian institutions.

Rehabilitation of Baharia Line
Commitment: €68 million
Total Disbursement: €57.2 million
Beneficiary: Egyptian National Railways
Objectives: The goal of this project is to ensure the adequate supply of the steel mill Helwan with 2.5 million tons of iron ore each year from the Baharia sources by eliminating design and construction deficiencies. The operational reliability as well as the maintenance of the rail-related preconditions for the transportation are to be restored.

National Drainage Project 2
Commitment: €51.1 million
Total Disbursement: €2.8 million
Beneficiary: Egyptian Public Authority for Drainage Projects
Objectives: The project aims at safeguarding and increasing farmers’ incomes and thus to mitigate poverty, which is widespread especially in the rural areas of Egypt. The immediate project objective is to secure and raise the yields of farmland. The project contributes to improving soils and thereby helps to secure agricultural production in the long term.

Spare Parts for General Overhauls of Locomotives
Commitment: €28.10 million
Total Disbursement: €24.9 million
Beneficiary: Egyptian National Railways (ENR)
Objectives: The project aims at increasing the transportation capacity of the ENR, especially of the freight traffic by providing financial resources for the general overhaul and accompanying measures. By increasing the availability of the locomotives and the efficiency of the maintenance work, the preconditions for the enhancement of the transportation of cargo are improved.

Rehabilitation of the Substations Heliopolis/Wadi Hoff and Karmouz
Commitment: €55.6 million
Total Disbursement: €52.5 million
Beneficiary: Egyptian Electricity Holding Company
Objectives: The project aims at contributing to the safety and power supply in the Egyptian electricity network. The expansion of the substations and the transmission system are necessary to avoid inefficiencies of the electricity network, transmittal losses and power breakdowns due to the doubled consumption of electricity over the passed 11 years.

Primary School Construction
Commitment: €82.3 million
Total Disbursement: €58 million
Beneficiary: General Authority for Educational Building
Objectives: The main objectives of the projects are to increase the enrolment rates of children in pre-school and primary school age and to improve the teaching efficiency by expanding classroom capacities in certain regions and reducing the classroom sizes. The target group of the project includes mainly children from poorer population groups and girls who are most severely affected by the inadequate primary education offer.

Irrigation Improvement Project of the Nile Delta
Total Disbursement: €25.4 million
Beneficiary: Ministry of Water Resources and Irrigation
Objectives: The objective of the project is to increase agricultural production through a more equal distribution of the available water. At the same time, water consumption per area unit is to be reduced by means of a more rational use of water, and the cost of water supply is to be lowered. The creation of water user groups and water user associations is to enhance the farmers’ responsibility for the operation and maintenance of the systems.

Wind Park Zafarana
Commitment: €74.1 million
Total Disbursement: €40.3 million
Beneficiary: New and Renewable Energy Authority & Egyptian Electricity Holding Company
Objectives: The objective of the project is to provide clean energy on a cost-efficient basis which otherwise would have to be generated by burning fossil fuels. This is a contribution to regional and, primarily, global environmental protection through the reduction of CO2 emissions. The produced electrical energy will be fed into the national grid and thereby contributes to the efficiency of the Egyptian power supply.

Improvement of the Freight Traffic of the Egyptian National Railways
Commitment: €27.6 million
Total Disbursement: €15.4 million
Beneficiary: Egyptian National Railways
Objectives: The project aims at improving the availability of all overhauled freight wagons and the processing of the freight traffic. Also, it aims at increasing the transportation capacity of the ENR. Therefore, the main goal is the increase of the transportation in general as well as the revenues made with the freight traffic of the ENR.

Environmental Facility for the State Industry + Accompanying Measures
Commitment: €28.6 million
Total Disbursement: €18.2 million
Beneficiary: Egyptian Environmental Affairs Agency (EEAA)
Objectives: The objective of the project is to reduce pollution caused by selected state-owned industrial enterprises. In the first phase, activities will focus on improving the wastewater load. This is to contribute primarily to improving the quality of wastewater. A consultants consortium supports EEAA with the lanning and environmental impact assessment.

Rural Finance Programme Dakahliya
Commitment: €24.5 million
Total Disbursement: €15.8 million
Beneficiary: Commercial banks
Objectives: The objectives of the project are to promote small rural enterprises and farms as well as develop a sector of small-scale credit targeted towards small rural enterprises and farms. Thereby the project is to contribute to increasing employment and income in the Governorate of Dakahliya. The project-induced greater commitment of commercial banks to this customer segment is to improve the availability of financial services in the rural area.

Social Fund for Development (Protection of the Nile Banks+Rural Infrastructure)
Commitment: €51.1 million
Total Disbursement: €30.5 million
Beneficiary: Local administrations via Social Fund for Development
Objectives: The general objectives of the Programme components are to create employment and income for poor population groups over a specific period and in designated areas, to improve the basic social and physical infrastructure in needy villages, and to protect the Nile River banks against progressive erosion. By these means the Programme is to contribute to temporarily mitigating structural poverty and to stabilising and improving the living conditions in rural regions.

Participatory Urban Development Manshiet Nasser
Commitment: €7.2 million
Total Disbursement: €1.5 million
Beneficiary: Cairo Governorate
Objectives: The objective is to contribute towards improving the living conditions of the mostly poor inhabitants of Ezbet Bekhit through a safe supply of drinking water and proper sewage disposal. A major feature is that the project planning is conducted with the participation of the inhabitants in order to ensure that decisions are not made above their heads.

Naga Hammadi Barrage
Commitment: €128 million
Total Disbursement: €45.3 million
Beneficiary: Egyptian Electricity Authority, Ministry of Water Resources andIrrigation – Reservoirs and Grand Barrages Sector
Objectives: The new construction of the Nile barrage will safeguard the irrigated agriculture in the governorates of Sohag and Assiut, which are among the poorest in the country. In the long term, the project thus contributes to preserving the livelihood of the population, which generates their income from farming. The construction of the Naga Hammadi Hydropower Station also helps to expand the availability of environmentally sound energy and thereby to substitute the missions of pollutants caused by thermal power stations.

Naga Hammadi Drainage
Commitment: €10.3 million
Total Disbursement: €5. million
Beneficiary: Ministry of Water Resources and Irrigation – Mechanical & Electrical Department, Egyptian Public Authority for Drainage Projects
Objectives: The project will help to lower the groundwater table through the provision of drainage facilities. It helps to secure the agricultural production base and thus the incomes of the farmers in Qena Governorate.

Sewage Disposal Amriya/Alexandria
Commitment: €33.2 million
Total Disbursement: €1.2 million
Beneficiary: Alexandria General Organisation for Sanitary Drainage
Objectives: The main benefit of the project is that the open canals and water bodies of Amriya as well as the adjacent Mediterranean cost are protected against sewage-induced contamination. It prevents stagnant sewage from contaminating the residential areas. For 300,000 people the project makes a crucial contribution to the reduction of health hazards by the environmentally proper disposal of sewage in a previously neglected residential area.

Rehabilitation of Pumping Stations
Commitment: €56.4 million
Beneficiary: Ministry of Water Resources and Irrigation
Objectives: Drainage pumping stations divert drainage water and lower the groundwater level and salinization of the soils. Under the project, seven old and worn out pumping stations are renewed or rehabilitated so as to ensure their duly operation. Therefore, this project contributes to safeguarding and increasing farm yields and earnings.

Rehabilitation of Generators of Aswan-Barrage
Commitment: €86.9 million
Beneficiary: Egyptian Electricity Holding Company, Hydro Plants Generation Company
Objectives: The objective of the project is to improve clean energy through the hydropower station on the Aswan-Barrage which otherwise would have to be generated by burning fossil fuels. This is a contribution to regional and, primarily, global environmental protection through the reduction of CO2 emissions by approximately 4.5 million tons each year. The electrical energy produced will be fed into the national grid and thereby contributes to the efficiency of the gyptian power supply.

Credit line for Private Industry/Environmental Protection (+Accompanying Measure: Environmental Impact Assessment)
Commitment: €63.4 million
Total Disbursement: €38.7 million
Beneficiary: Commercial banks
Objectives: The objective of the Programme is the promotion of viable industrial enterprises and the creation of acceptable environmental and work conditions at the enterprises promoted in line with legal regulations. This is to contribute to increased economic growth and employment, environmental protection and labour safety.

Micro Enterprise Development
Commitment: €10.2 million
Total Disbursement: €10.2 million
Beneficiary: Social Fund for Development (SFD)/Small Enterprise Development Organisation
Objectives: The objectives of the project are the promotion of viable existing or newly founded small enterprises and successful, customer-oriented investment lending of commercial banks. The project thus aims at creating and preserving jobs and income in the private sector in Egypt and making of the formal financial sector accessible to small enterprises.