The African Development Bank has received praise for financing a multi-million-dollar life-changing sanitation project in Upper Egypt that will provide potable water to thousands of families and help boost local agriculture.
The "Integrated Rural Sanitation in Upper Egypt in Luxor" (IRSUE-Luxor), the first-ever Bank-funded project to deliver integrated sanitation systems in Egypt, is part of the National Rural Sanitation Program to connect more than 22,000 households to sewerage systems upon completion.
The project will provide integrated sanitation systems by treating wastewater generated in rural areas in Upper Egypt for reuse for agricultural and other purposes. It aims to expand access to improved sanitation services in rural areas from 34% in 2019 to 98% in 2030.
Wastewater treatment plant under construction, El Dababya Cluster in Luxor, Egypt.
During a Bank supervision mission from November 20-23, top Egyptian government officials, including Dr Sayed Ismail, Deputy Minister of Infrastructure, Ministry of Housing, Utilities and Urban Communities, singled out the Bank's Results-Based Financing (RBF) instrument for accelerating the project's implementation. The Governor of Luxor, Mustafa Mohamed Alham, and Ahmed Mohamed Ramadan, Chairman of the Luxor Water and Wastewater Company, also commended the Bank for supporting the project.
Deputy Minister Ismaila joins teams from the Bank, project implementation and monitoring units, as well as the contractors at El Dababya Wastewater treatment plant site in Luxor.
Dr Ismail and the Bank team, led by Ms Alba Serna, Senior Water and Sanitation Engineer and the project's Task Manager, visited seven sites and met with the contractors and beneficiaries. He said he was impressed with the pace of the civil works, which are on course to be completed by mid-2024, nearly one year ahead of schedule.
The Deputy Minister attributed the progress to the RBF instrument, motivating the contractors to expedite their work for prompt reimbursement. "The RBF is an effective instrument; not only motivating contractors to expedite their activities, but the instrument also indirectly stimulates competition among them," he added.
The Bank Group's Board of Directors approved the Integrated Rural Sanitation in Upper Egypt in Luxor project in December 2019 with a loan of €108 million and a € 1 million grant from the Rural Water Supply & Sanitation Initiative (RWSSI) Trust Fund. It uses a specially designed results-based finance instrument, the second one in Africa and the first in the Bank's water sector.
Mr Samuel Kamara, Principal Country Program Officer in the Bank's Egypt Country Office, acknowledged the government's ownership of the project and commended the Deputy Minister for overseeing faster implementation while ensuring compliance with quality, environmental, and social standards.
At a separate meeting with the Bank team, Luxor Governor Alham pointed out that the project was a government priority.
"We appreciate the Bank for its intervention and deployment of the RBF instrument to ensure faster and more effective delivery of results," the Governor said, exalting the cooperation between Egypt and the Bank.
Representatives from the Asfoun community, the location of a new pumping station under the project, look forward to improved access to potable water and sanitation facilities.
Nearly 162,000 inhabitants will benefit directly from the programme by accessing the improved sewerage system. The Luxor Water and Sanitation Company staff will also receive training to strengthen their capacities as part of the project, which will also provide business opportunities for local contractors for civil works supply and installation. Around 1,500 local jobs will be generated, of which 30% will be permanent.
Tomas 3 pump station discharge facility at Tomas village, Luxor, Egypt.
