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EC-EGYPT CO-OPERATION PROGRAMME

• Volume: €1.1 billion in grants (MEDA I and II)• Instruments: classical projects (technical

assistance, supply of equipment, works) and budgetary support

• End beneficiaries: institution building, business community, civil society and population at large

• Presentation focuses only on ongoing programmes categorised into Economic and Social/Rural ones

• EIB: in addition, about €1billion in loans• MEDA: bilateral and regional programmes

(Eumedis, Euromed Heritage, SMAP)

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COOPERATION IN SUPPORT OF ECONOMIC REFORM

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INDUSTRIAL MODERNISATIONIndustrial Modernisation Programme (IMP) - €250m

December 1998 – May 2006Objectives:• To promote the competitiveness of the private sector with special emphasis on SMEs.Activities:• TA component: Policy support to the Ministry of Trade and Industry, Technical Assistance to

enterprises notably through a network of 10 Business Resource Centres, fostering quality and facilitating access to finance,

• BS component: Strengthening fiscal transparency, liberalising business environment, promoting financial sector reform including privatisation of public and joint venture banks

Spinning and Weaving Sector Support Programme - €80mDecember 2004 – December 2007Objectives:• Assist the government’s efforts in restructuring the public spinning and weaving sector.Activities:• Improve the regulatory framework to eliminate distortion in uses of cotton, assist improvements

in management of the Holding Company and its affiliates, allow for privatisation of affiliates, implement labour pools to provide re training of redundant staff.

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TRADE ENHANCEMENT and CUSTOMS REFORM

Trade Enhancement Programme (TEP) -A - €20mAugust 2002 – May 2007Objectives:• Reinforce Egypt’s institutional capacity in trade,• Support the authorities’ efforts in export promotionActivities:• The program concentrates on institutional capacity and upgrading of human

resources of the Ministry of Trade and Industry and the Ministry of Investment (GAFI) in charge of : commercial diplomacy (Commercial Representation Services and network of commercial attaches in Egypt’s Embassies), EU-Egypt Association Agreement, WTO Agreements, export promotion, foreign investment and trade facilitation.

Trade Enhancement Programme (TEP) -B - €40mJuly 2003 – June 2007

Objectives: This budgetary support programme aims at:• Simplification of customs procedures, implementation of export incentives and

rationalization of quality standards.

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TRADE ENHANCEMENT and CUSTOMS REFORM

Trade Enhancement Programme (TEP) -C - €6mDuration: June 2004 – December 2007

Objectives:• Make customs formalities more predictable and less

costly for all operators in foreign trade activities.

Activities:• TA for Customs website, strengthening the use of IT

solutions and automation.• TA for customs valuation, risk management and pre

shipment release.

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FINANCIAL SECTOR REFORMFinancial and Investment Sector Cooperation (FISC)- Financial

component - €15mDuration: January 2005 – October 2008

Objectives: • Technical Assistance to financial sector reform in line with international

best practices.

Activities: • Reinforce Central Bank’s capacity for banking supervision,

• Acquisition/installation of a Real Time Gross Settlement payments system at the Central Bank,

• Support the restructuring of two public banks (NBE and Bank MISR),

• Support the Egyptian Capital Market Authority (with a focus on corporate governance).

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COOPERATION IN THE AREA OF SOCIAL AND RURAL

DEVELOPMENT

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HEALTHHealth Sector Reform Programme (HSRP) (€110m)

December 1998 – July 2006Objectives:• To provide the Egyptian population with access to a high quality

package of primary health services (Family Medical System), covering also persons currently not covered by the national insurance system (like the unemployed, the elderly, the very young, which make up approx. 50% of the population).

Activities:• Support the launching of the Family Medical System in 5

pioneer governorates. This should be made possible through a network of accredited Family Health Units (today over 400 such units have been accredited and are operational).

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EDUCATIONEducation Enhancement Programme (EEP) (€100m)April 1998 –June 2006Objectives:• Improve the quality of teaching, increase the enrolment rates, reduce the level of drop-outs,• Facilitate access to schooling in rural areas.

Activities:• Construction of approx. 130 schools in rural areas,• Provision of IT equipment (purchase of 13,000 computers and auxiliary equipment to equip more than

1,000 basic education schools),• Training for 900 teachers in Egypt and abroad in modern education techniques.

Technical Vocational Education and Training (TVET) (€33m)April 2003- June 2011Objectives:• Support a consolidated and demand-driven national TVET reform policy.Activities:• Identification and establishment of 12 public/private partnerships in training,• Capacity building of private and public TVET providers participating in partnerships,• Development of a TVET Management Information System (MIS),• Strengthening of co-ordination in policy reform initiatives of the GoE in TVET.

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SOCIAL DEVELOPMENT Social Fund for Development (SFD) (€155m)March 1998 – June 2005Objectives:• Contribute to poverty reduction in Egypt

Activities:• Improve and expand sustainable job creation in Egypt through credits to micro and small enterprises in order to

increase their output and employment. • Provide physical and social infrastructure in targeted, deprived, areas on a demand driven basis.• Establish a Management Information System improving the overall transparency, reporting and accountability of the

Fund.

Financial and Investment Sector Cooperation (FISC)- Social component (€17m)September 2004 –December 2008Objectives:• Develop effective financial and non-financial services for SMEs.Activities:• Provide a combined package of credit-lines, grants and training to selected NGOs providing micro credits.• Provide credit-lines to banks giving loans directly to SMEs.

Children at Risk (€20m) May 2004 – December 2010Objectives:• Improve the living conditions of several categories of children at risk.Activities:• Provide support to UNDP’s FGM (female genitals mutilation) Free Village Model,• Support the Girls Education Initiative of the National Council for Childhood and Motherhood (NCCM),• Support street-, working and disabled children through calls for proposals. Proposals to be submitted by NGOs

specialised in the protection of children at risk.

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REGIONAL DEVELOPMENT

South Sinai Regional Development Programme (€64m)April 2005 – December 2012

Objectives:• The development of local economy and activities and the preservation and

support of the social, cultural and natural resources of South Sinai.Activities: • Major infrastructure projects strengthening environmental protection and

sustainable development e.g. water, sanitation.• Demand driven projects in social and local development, cultural heritage, public

awareness etc, emanating from the civil society and stakeholders in South Sinai through the allocation of grants, following calls for proposals.