The African Development Bank (AfDB) and the government of Egypt have signed a loan agreement for $50-million from the Africa Growing Together Fund (AGTF) – a $2-billion special fund provided by China and managed by the bank to cofinance bank operations.

This agreement complemented earlier signed agreements of a $90-million loan from the bank’s loan window and $1.8-million grant from the AfDB’s Middle-Income Countries Technical Assistance Fund, all earmarked for the Sharm El-Sheikh Airport development project.

Signing for the AfDB, bank president Akinwumi Adesina noted that the Sharm El-Sheikh Airport development project, in Egypt, was the first among a series of projects being financed by the bank using the AGTF resources.

The $671-million expansion project entailed the development of a new terminal building, construction of a new runway and new control tower with associated airfield works, installation of electrical and navigational equipment and the development of an airports centre of excellence.

Once completed, the project would increase the passenger-handling capacity from 10-million to 18-million passengers a year and develop national expertise in airport planning and management.  

The project was further expected to remove a bottleneck in the movement of travellers, including tourists, into and out of Sharm El-Sheikh City, supporting economic growth, generating additional direct and indirect job opportunities and boosting Egypt’s competitiveness as a tourism and investment destination.

“This loan marks the beginning of new efforts by the bank to support the development of transport infrastructure in Egypt. The bank stands ready to continue to support the government of Egypt in its efforts to reform and significantly increase infrastructure investment,” Adesina commented.

Egyptian International Cooperation Minister Sahar Nasr, meanwhile, expressed Egypt’s appreciation for the bank’s support at this “critical” time of transition and reaffirmed the government’s commitment to ensuring effective implementation of the airport project, which would boost the country’s tourism sector and enhance its competitiveness.

The AfDB currently had ongoing commitments of $1.96-billion in Egypt, covering 35 operations.