Jordan wants details on Egypt's proposed World Bank Group-backed facility, which would use guarantees to draw private investment into infrastructure projects.
Under the proposed model, guarantees would take on financial and credit risks that can keep private capital out of infrastructure projects. Egypt is developing the Infrastructure Finance Guarantee Facility, or IFGF, with the World Bank Group to mobilise investment through public-private partnerships.
Planning and Economic Development Minister Ahmed Rostom met Jordanian Planning and International Cooperation Minister Zeina Toukan on the sidelines of the International Monetary Fund and World Bank Group Annual Meetings in Bangkok, Thailand. They discussed the facility and wider development cooperation.
Guarantees aimed at private investment
Rostom said Egypt wanted to expand cooperation with Jordan and share expertise in economic planning and development. The proposed framework would give projects a unified, "one-stop" process for assessment and approval. Egyptian officials say the approach would move away from direct sovereign guarantees towards managed financial obligations, while streamlining procedures and increasing transparency.
The facility is planned for selected sectors. These include seawater desalination and wastewater treatment, as well as recycling and renewable energy. Rostom also cited sustainable transport and the green transition. Industrial-zone infrastructure is another priority. He outlined these areas in discussions about the IFGF, including Egypt's proposed guarantee scheme.
The World Bank Group says it has mobilised nearly $6.7 billion in private capital for Egypt since fiscal year 2021/22. Projects have covered renewable energy and ports, alongside affordable housing and support for businesses.
In energy, the International Finance Corporation provided about $289.9 million in financing and blended-finance resources. It mobilised more than $1 billion in private investment for four projects. Two were the Abydos I and II solar plants; another was the Amunet wind farm. The fourth was a utility-scale battery storage system. The Multilateral Investment Guarantee Agency provided AMEA Power with a $1.48 billion portfolio guarantee covering projects in Egypt and other markets.
Separately, Telecom Egypt has planned a cable across Sinai, as described in an earlier report.
Jordan seeks details of the facility
Toukan welcomed closer cooperation with Egypt and said Jordan wanted to learn more about the facility. She was also interested in how it could support infrastructure financing and private-sector investment.
Egypt has discussed the proposed mechanism with international financial institutions, investors and development agencies. The government has presented it as a way to diversify financing and take pressure off the state budget. It also says the facility could improve access to long-term funding, including in local currency. Its design remains under preparation.
