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The Egyptian Pollution Abatement Programme is a major initiative of the Ministry of State for Environmental Affairs (MSEA) to help industry improve performance and comply with environmental regulations. Eligible industries in Greater Cairo and Alexandria can take advantage of funds available through the Egyptian Pollution Abatement Project (EPAP II) while those
in Upper and Lower Egypt can apply for funding through the Private Public Sector Industry Project (PPSI). |
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Egyptian Pollution Abatement Project (EPAP II) |
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Funding Partners |
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Investment Component (soft financing packages) |
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| European Investment Bank |
40 million euro |
| French Development Agency |
40 million euro |
| Japan Bank for International Cooperation |
4.7 billion yen |
| World Bank |
20 million US $ |
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Technical Assistance Component (Institutional and technical support) |
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| European Investment Bank |
3 million euro |
| Government of Finland |
0.9 million euro |
| Government of Egypt |
17.5 million LE |
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Financing Pollution Abatement Sub-projects |
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Eligible Sub-projects |
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Funding is available for industrial activities in Greater Cairo and Alexandria. Companies applying must be credit worthy. Projects should: a) comply with Egyptian environmental law. b) decrease pollution loads by 50%; c) are technically and economically feasible; and d) fall under the following areas: |
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End of pipe treatment for air emissions and waste water. In-process modifications and cleaner technologies. Work environment. Energy conservation and conversion to cleaner fuels. Hazardous waste management. Environmental services. |
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| Civil works and projects with substantial production increases are not eligible for EPAP financing. |
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Loan and Grant Facility |
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For MSEA approved projects funding can be obtained through the National Bank of Egypt or one of their approved participating banks based on: |
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| Loan: |
Up to 90% of project investment costs with a maximum loan of US$15 million and a minimum loan of US$100,000. |
| Grant: |
20% of loan for projects achieving environmental objectives. |
| Interest: |
Foreign loans: 2% above Libor/Euribor for 6 months plus 0.1% monthly on highest debit balance
Local currency: 12% annually plus 1.5% monthly commission on highest debit balance. |
| Repayment: |
5-8 years with 1-2 years grace period |
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Responsibilities of Sub-borrowers |
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Borrowers should, in
accordance with guidelines available from MSEA: |
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prepare environmental assessment of project. submit compliance action plan for the entire facility for EEAA approval. prepare technical feasibility. undertake procurement following EPAP requirements. enter into an MSEA technical agreement on environmental objectives, monitoring and implementation. |
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Private Public Sector Industry (PPSI) |
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Funding Partners |
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PPSI is available to eligible private and public companies (excluding multinationals) in Upper and Lower Egypt (excluding Greater Cairo and Alexandria) wishing to implement pollution abatement projects. PPSI is supported by KfW with a grant facility of 6.7 million euros for project implementation and 0.6 million euros for institutional and advisory support. Preferential financing is available to SMEs with an annual turnover of less than LE20 M. |
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Grants for Pollution Abatement Sub-projects |
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Eligible Sub-projects |
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Sub-projects should: a) result in the industrial establishment being fully compliant with the environmental law in at least one of the following areas: air, water, solid waste and work place environment; c) be technically and economically feasible; and d) fall under the following areas: |
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End of pipe treatment for air emissions and waste water. In-process modifications and cleaner technologies. Work environment. Energy conservation and conversion to cleaner fuels. Hazardous waste management. Process/recycling of agricultural waste. |
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Projects with proposed production increase of more than 10% are not eligible for PPSI financing. |
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Grant Facility |
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For MSEA approved projects grants can be obtained on the following basis: |
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| Grant: |
30% of investment costs for SMEs; 20% for non-SMEs
50% of technical study for SMEs and 20% for non-SMEs (max 5% of investment costs) |
| Maxgrant: |
800,000 euros per sub-project. |
| Applicants: |
Contribute minimum 10% of investment costs and 50% (SME) or 80% (non SME) of technical study costs:
External financing: maximum of 60% for SMEs and 70% for non-SMEs
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Companies Interested in Applying |
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For further information on EPAP II procedures and forms:
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EPAP II Procedures and Conditions for Obtaining Funds for Environmental Projects |
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EPAP II Application Form (English) |
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EPAP II Application Form (Arabic) |
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EPAP II Environmental Audit Study (Part I) |
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EPAP II Environmental Audit Study (Part II) |
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EPAP II Compliance Action Plan (CAP) |
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