Egypt: Generating Resilience, Opportunities, and Wealth for a Thriving Egypt

proposed

The Program comprises of three reform areas. The Bank's support is focused on the Reform Area 3 which is directly supporting the Member's implementation of the National Climate Change Strategy 2050 to achieve the goals of the Nationally Determined Contributions. Reform Area 1 Enhancing economic competitiveness through increased competition and an improved business environment for more private sector participation. Prior Action 1 The Borrower has submitted to Parliament the draft law 179/2024 to regulate its ownership in state owned companies. Prior Action 2 The Borrower has issued a Prime minister decree amending Executive Regulations of Law 152/2022 with provisions on competition and prohibition of monopolistic practices to implement merger control, and limit anticompetitive effects through remedies. Prior Action 3 The Borrower has submitted the draft Law 125/2024 on Small Claims to Parliament. Reform Area 2 Building macroeconomic resilience to external shocks, through higher domestic revenue mobilization, debt reduction, improved fiscal reporting, and redistributive effectiveness. Prior Action 4 The Borrower has (i) promulgated Law 159/2023 that eliminates tax and fees exemptions to State entities in economic and investment activities; and (ii) issued MoF Decrees to gradually roll-out the system that standardizes the principles and criteria for calculation of wages and salaries tax. Prior Action 5 The Borrower has issued a Primary Dealer Decree including rules and incentives to improve competition, transparency and increased secondary market trading. Prior Action 6 The Borrower has promulgated amendments to the Unified Public Finance Law to improve fiscal reporting by including economic authorities in the definition of the general government. Reform Area 3 Supporting the green transition by strengthening resilience to climate change, promoting low carbon development, scaling up renewable energy, and increasing electricity, water, and sanitation sectors' efficiency. Prior Action 7 The Borrower has issued decree no. 415 of 28 December 2023 for the establishment of a working group to support the national monitoring reporting, and verification system (MRV), and to allow Egypt to collect data on GHG emissions, track progress on mitigation and adaptation measures. Prior Action 8 The Borrower has issued three decrees on the main Building Blocks of the domestic carbon markets: (i) the requirements for validation and verification bodies (VVBs) approved by FRA for both international and domestic bodies; (ii) the requirements for domestic voluntary carbon credit registries approved by FRA; and (iii) the listing and delisting rules for voluntary carbon credits. Prior Action 9 The Borrower, through the board of directors of the Egyptian Electric Utility and Consumer Protection Regulatory Agency, has issued a circular agreed at its 14th session of 28 March 2024, governing direct renewable electricity supply between private producers and consumers (private-to-private) including the use of transmission networks. Prior Action 10 The Borrower, through a decision of the board of directors of the Egyptian Electricity Holding Company, has approved a loss reduction plan with annual distribution loss reduction targets for the distribution companies owned by EEHC, and mandating said electricity distribution companies to achieve set targets. Prior Action 11 The Borrower has submitted to the Parliament a draft law on regulating drinking water and sanitation utilities, which brings in reforms to strengthen the regulator's role, implement cost reflective tariffs, and enable private sector participation.