Partners

The Ministry of Housing, Utilities and Urban Communities (MoHUUC) has the following rights and responsibilities:

To be a signatory of the Financing Agreement with the EC (co-signatory: MoIC);
To be a signatory of the Agreement with CBE to on-lend/transfer the contributions from AFD, EIB and KfW to MoHUUC (at the same terms and conditions as in the initial Loan and Financing Agreements with CBE);
To be the second signatory of the Loan and Financing Agreements of AFD and KfW (first signatory: CBE);
To be signatory (together with HCWW) to the EIB Finance Contract as Programme Executing Agency for the Borrower;
To ensure that all EDP funds are transferred to the HCWW on a grant basis;
To assure that the Egyptian contribution to the IWSP 1 (total of EUR 82.2 million) is budgeted in accordance with IWSP 1 financing requirements and to assure that the funds are made available in due time; and
To open a GoE programme account at CBE and delegate the management of this account to the HCWW. This account shall be used as a special account for the funding coming from the Government of Egypt.

European Development Partners (EDP)
Each of the European Development Partners (EDP) will act individually in:

Assuring that financing of the Investment Component (including engineering consultant cost directly related to investment) is made available “pari passu” and non earmarked by all four EDPs;
Assuring that grant funding from EU and KfW is made available "pari passu" and non-earmarked;
Giving no-objection for the award of works contracts for which International Competitive Bidding is foreseen (above a threshold of EUR 5,000,000).

KfW will be the Lead Financing Institution (LFI) and has the following roles and responsibilities:

To act as a principal coordinator between the Egyptian stakeholders and the EDPs on issues related to preparation and implementation of the IWSP 1;
To represent the three EDPs in the Steering Committee;
To act as a contractual authority on behalf of the HCWW for audit contracts with local or international audit companies as well as for consultants hired for review and monitoring missions (for example mid-term review);
To exert ex-ante-control and give no-objection (in the name of the EDPs) for the award of works contracts below a threshold of EUR 5,000,000 and to seek approval from the co-financing institutions for contracts above this threshold;
To check the documentation for the initial and the replenishment requests (including the audit reports) related to the IWSP Special Account and inform the other EDPs accordingly; and

To regularly report to the EDPs on the progress of the IWSP 1.

The IWSP 1 is a European Water Initiative to improve the water sector in Egypt and is supported by KfW, EU, AFD, and EIB, where KfW is the lead donor.
On behalf of the German Government, the KfW Entwicklungsbank is currently financing 450 projects in the water and sanitation sector in about 50 countries primarily in cities.
The KfW Entwicklungsbank always agrees with the partners on a counterpart contribution. The exact amount is determined by the type of financing, the level of development of the country or the partner organization, and the nature of the project. Those Financial Corporation Funds are complemented by funds that partners raise.
With these activities, the KfW Entwicklungsbank and the local partner organizations jointly reach more than 41.3 million people who benefit significantly from improved water and sanitation supply, a more hygienic living environment, and clean water in rivers and lakes.

The Central Bank of Egypt (CBE) has the following rights and responsibilities:

To represent the GoE as Borrower/Beneficiary for the Loan Agreements or Finance Contracts to be concluded with AFD, EIB and KfW as well as the Financing Agreement (grant) to be concluded with KfW (second signatory: MoHUUC);
To conclude on-lending agreements for the on-lending of the AFD, EIB and KfW loan funds as well as the transfer of the above grant funding (at the same terms and conditions as in the initial Loan and Financing agreements) to the MoHUUC.

Government of Egypt (GoE):
The Ministry of International Cooperation (MoIC) has the following rights and responsibilities:

To be a signatory of the Umbrella Agreement on behalf of the GoE (other signatories: the four EDPs);
To initiate the ratification process by the Egyptian Parliament for the whole financing package through ratification of the Umbrella Agreement; and to be a signatory of the Financing Agreement with the EC (co-signatory: MoHUUC).

European Union (EU):
The EU is Egypt's neighbor and enduring partner. EU-Egypt relations are enriched by a common history, common interests, and perhaps more than ever today, common values. The European Union is fully committed to supporting the transition process. That said, this is something that has been conceived and driven by the Egyptian people and the EU is fully respecting this.
The EU-Egypt Association Agreement sets out our joint political commitments and facilitates cooperation across the board. The EU is Egypt's largest trading partner, the number one foreign investor and some 40% of incoming tourists come from the EU. The European Institutions and the 27 EU member states are committed to deepening our partnership, based on its commonalities and mutual accountability. That is why the EU is working with the government, the private sector, and civil society in so many areas in Egypt. From democracy and human rights to social services and infrastructure to science and technology, trade and investment, agriculture, tourism, and cultural cooperation, the EU's cooperation covers almost the entire spectrum of activity here in the country.

EU contribution: EUR 34 million; grant to the Government of Egypt for the IWSP 1.

European Investment Bank (EIB):
The European Investment Bank (EIB) is the EU Bank. Its shareholders are the 27 Member States of the Union, which have jointly subscribed to its capital. The EIB's Board of Governors is composed of the Finance Ministers of these States. The EIB's role is to provide long-term finance in support of investment projects.
EIB contribution: EUR 70 million; soft loan to the Government of Egypt for the IWSP 1.

Agence Française de Développement (AFD) is a financial institution and the main implementing agency for France’s official development assistance to developing countries and overseas territories.
AFD contribution: EUR 40 million; soft loan to the Government of Egypt for the IWSP 1.

The Holding Company for Water and Wastewater (HCWW) has the following rights and responsibilities:

To be signatory (together with MoHUUC) to the EIB Finance Contract as Programme Executing Agency for the Borrower;
To receive the contributions of the four EDPs as grants from the MoHUUC;
To act as the implementing agency for the IWSP 1 with overall responsibility for the IWSP 1 management (technical and financial) including the establishment of the PMU and the nomination of a key staff member heading the PMU;
To open a programme account (“IWSP Special Account”) at a commercial bank and manage it. This account shall be used as a special account for the funding coming from the EDPs and channeled through CBE for the financing of the Investment Component of the IWSP 1;
To report to the SC and the EDPs about the progress of the IWSP 1 (implementation progress as well as performance indicators of the ACs);
To assure that the contractual arrangements with the EDPs are respected by the ACs;
To assure the compliance of the ACs with the procurement and disbursement rules and procedures established for the IWSP 1;
To act as the contractual authority for the consultant contracts related to TA for the HCWW as well as the ACs;
To submit the requests for disbursement for the TA Consultant contracts to the Lead Financing Institution with the respective supporting documentation attached;
To administer the "IWSP Special Account" receiving all the EDP funds related to the Investment Component;
To submit the initial and the replenishment requests for the "IWSP Special Account" to the Lead Financing Institution;
To financially manage the Investment Component by making initial payments and replenishing the "IWSP Special Sub-accounts" at the level of the ACs;
To ensure that the "IWSP Special Sub-accounts" at AC level are duly managed and to control the expenditures of the ACs;
To manage the account to be opened by HCWW with a commercial bank for receiving the contributions from the GoE for the co-financing of the IWSP 1;
To support the ACs (with the assistance from the IC) regarding the implementation of IWSP 1;
To follow-up the overall performance of the ACs with respect to the indicators agreed upon for the IWSP 1; and
To make payments to TA Consultants, auditors, etc. financed under the TA Component (except for payments made directly by KfW).

To demonstrate the satisfactory operation of the projects financed under the IWSP 1 and the improved financial sustainability of the ACs, the HCWW shall also submit, as part of the reporting, annual O&M concepts of the ACs. At the same time, the HCWW shall submit annual budget forecasts, showing that the operation cost of the ACs (including Adequate O&M of the WS and WW installations) are covered from these budgets. The HCWW shall periodically update these forecasts and ensure that any financing gaps shall be covered in due course (this refers especially to GoE subsidies.

The Affiliated Companies (ACs) of Beheira, Sharkia, Gharbia, and Damietta have the following rights and responsibilities

To manage the "IWSP Special Sub-accounts" replenished by the HCWW;
To act as a contractual authority for all civil works, services and supply contracts directly related to the implementation of individual investment projects (including related engineering consulting services;
To make payments related to the above civil works, services and supply contracts;
To submit invoices for counter-check by HCWW;
To establish the project implementation structures (fully integrated PIU) and to nominate a key staff member with sufficient authority as co-ordinator of all IWSP 1 activities (with 100% capacity dedicated to IWSP 1;
To report to the HCWW about the progress of the IWSP 1 (implementation as well performance reporting, financial reporting), and
To be responsible for O&M of the individual projects financed under the IWSP 1.