Prime Minister Moustafa Madbouly reviewed the proposed Infrastructure Finance Guarantee Facility (IFGF) on Tuesday, July 21, 2026, describing it as an innovative financing mechanism that would expand private-sector participation in infrastructure projects, ease pressure on the state budget, and support public-private partnership (PPP) initiatives.
The meeting, held at the Government Headquarters in the New Capital, examined the facility's objectives, areas of operation, and the key infrastructure projects expected to be financed through the mechanism as part of the state's efforts to promote sustainable financing and increase private-sector participation in infrastructure development.
Deputy Prime Minister for Economic Affairs Hussein Eissa said the proposed mechanism is designed to encourage greater private investment in infrastructure while reducing the state's financing burden and ensuring the sustainable implementation of priority development projects through innovative financing solutions.
Minister of Planning and Economic Development Ahmed Rostom explained that the IFGF is a proposed credit guarantee mechanism to be established through a partnership between the Egyptian government and the World Bank Group, involving the International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC), with the potential participation of the African Development Bank (AfDB).
He said the facility aims to reduce pressure on the state budget, manage contingent liabilities more efficiently, attract private investment to the renewable energy, water, transport, and housing sectors, promote local-currency financing, reduce foreign exchange risks, support fiscal sustainability, and expand private-sector participation in line with Egypt Vision 2030.
Rostom also reviewed a pipeline of infrastructure projects proposed under the facility, including pilot projects scheduled for implementation between 2028 and 2038, particularly public-private partnership projects in renewable energy, private-to-private (P2P) investments in energy-intensive industries, and other projects currently under preparation.
Minister of Electricity and Renewable Energy Mahmoud Esmat said recent discussions with World Bank officials focused on addressing key challenges facing infrastructure financing, including the availability of long-term financing, high borrowing costs, and guarantee requirements.
He stressed the importance of continued cooperation to advance renewable energy, strengthen the electricity grid, and benefit from international expertise. Minister of Finance Ahmed Kouchouk said the proposed facility complements other innovative financing mechanisms, including guarantee ceiling arrangements and expanded PPP frameworks, helping maximize private-sector participation and strengthen cooperation with international development partners.
For his part, World Bank Director of International Finance and Investment Practices Niraj Verma said the proposed facility is well aligned with Egypt's infrastructure financing needs and reflects the growing partnership between the Egyptian government and the World Bank.
He also highlighted the bank's experience in implementing similar mechanisms in other countries to mobilize private capital for infrastructure projects. Concluding the meeting, Madbouly directed the relevant authorities to expedite the procedures required to finalize the facility through close coordination between the government and the Central Bank of Egypt, with the aim of completing the mechanism before the end of the year and launching financing for a number of infrastructure projects.