| Project Detail |
Egypt, with support from the EBRD’s High-Impact for Climate Action Fund and other donors, launched the Energy Pillar of the Nexus Water-Food-Energy Programme (NWFE-EP) in 2023. As a cornerstone of this initiative, Egypt aims to decommission 5?GW of outdated and inefficient fossil fuel power plants, thereby freeing up capacity for 10?GW of renewable energy and accompanying grid infrastructure investments. This strategy is designed to bolster energy security by replacing unreliable assets with resilient, high-performance facilities that enhance the stability and reliability of Egypt’s power system. A critical element of this project is a USD 40 million package of grants, structured as Performance Incentive Payments (PIPs). These funds, governed by a legally binding agreement between the Bank, supported by international donors, and the Egyptian Electricity Holding Company (EEHC), are earmarked for meeting decommissioning milestones for retiring the underutilized capacity. The PIPs will be disbursed in tranches linked to specific targets under NWFE, ensuring accountability and progress. Disbursement of the financial incentive payments will be made against defined milestones, along with defining the appropriate arrangements in place to monitor, verify and report the progress and achievement of the milestones that EEHC is required to meet. This will be primarily done by NWFEs Energy Pillar Technical Support Unit as well as EBRD. |
