EC-EGYPT CO-OPERATION PROGRAMME

1. EC-EGYPT CO-OPERATION PROGRAMME • Volume: €1.1 billion in grants (MEDA I and II) • Instruments: classical projects (technical assistance, supply of equipment, works) and budgetary support • End beneficiaries: institution building, business community, civil society and population at large • Presentation focuses only on ongoing programmes categorised into Economic and Social/Rural ones • EIB: in addition, about €1billion in loans • MEDA: bilateral and regional programmes (Eumedis, Euromed Heritage, SMAP)

2. COOPERATION IN SUPPORT OF ECONOMIC REFORM

3. INDUSTRIAL MODERNISATION Industrial Modernisation Programme (IMP) - €250m December 1998 – May 2006 Objectives: • To promote the competitiveness of the private sector with special emphasis on SMEs. Activities: • TA component: Policy support to the Ministry of Trade and Industry, Technical Assistance to enterprises notably through a network of 10 Business Resource Centres, fostering quality and facilitating access to finance, • BS component: Strengthening fiscal transparency, liberalising business environment, promoting financial sector reform including privatisation of public and joint venture banks Spinning and Weaving Sector Support Programme - €80m December 2004 – December 2007 Objectives: • Assist the government’s efforts in restructuring the public spinning and weaving sector. Activities: • Improve the regulatory framework to eliminate distortion in uses of cotton, assist improvements in management of the Holding Company and its affiliates, allow for privatisation of affiliates, implement labour pools to provide re training of redundant staff.

4. TRADE ENHANCEMENT and CUSTOMS REFORM Trade Enhancement Programme (TEP) -A - €20m August 2002 – May 2007 Objectives: • Reinforce Egypt’s institutional capacity in trade, • Support the authorities’ efforts in export promotion Activities: • The program concentrates on institutional capacity and upgrading of human resources of the Ministry of Trade and Industry and the Ministry of Investment (GAFI) in charge of : commercial diplomacy (Commercial Representation Services and network of commercial attaches in Egypt’s Embassies), EU-Egypt Association Agreement, WTO Agreements, export promotion, foreign investment and trade facilitation. Trade Enhancement Programme (TEP) -B - €40m July 2003 – June 2007 Objectives:This budgetary support programme aims at: • Simplification of customs procedures, implementation of export incentives and rationalization of quality standards.

5. TRADE ENHANCEMENT and CUSTOMS REFORM Trade Enhancement Programme (TEP) -C - €6m Duration: June 2004 – December 2007 Objectives: • Make customs formalities more predictable and less costly for all operators in foreign trade activities. Activities: • TA for Customs website, strengthening the use of IT solutions and automation. • TA for customs valuation, risk management and pre shipment release.

6. FINANCIAL SECTOR REFORM Financial and Investment Sector Cooperation (FISC)- Financial component - €15m Duration: January 2005 – October 2008 Objectives: • Technical Assistance to financial sector reform in line with international best practices. Activities: • Reinforce Central Bank’s capacity for banking supervision, • Acquisition/installation of a Real Time Gross Settlement payments system at the Central Bank, • Support the restructuring of two public banks (NBE and Bank MISR), • Support the Egyptian Capital Market Authority (with a focus on corporate governance).

7. COOPERATION IN THE AREA OF SOCIAL AND RURAL DEVELOPMENT

8. HEALTH Health Sector Reform Programme (HSRP) (€110m) December 1998 – July 2006 Objectives: • To provide the Egyptian population with access to a high quality package of primary health services (Family Medical System), covering also persons currently not covered by the national insurance system (like the unemployed, the elderly, the very young, which make up approx. 50% of the population). Activities: • Support the launching of the Family Medical System in 5 pioneer governorates. This should be made possible through a network of accredited Family Health Units (today over 400 such units have been accredited and are operational).

9. EDUCATION Education Enhancement Programme (EEP) (€100m) April 1998 –June 2006 Objectives: • Improve the quality of teaching, increase the enrolment rates, reduce the level of drop-outs, • Facilitate access to schooling in rural areas. Activities: • Construction of approx. 130 schools in rural areas, • Provision of IT equipment (purchase of 13,000 computers and auxiliary equipment to equip more than 1,000 basic education schools), • Training for 900 teachers in Egypt and abroad in modern education techniques. Technical Vocational Education and Training (TVET) (€33m) April 2003- June 2011 Objectives: • Support a consolidated and demand-driven national TVET reform policy. Activities: • Identification and establishment of 12 public/private partnerships in training, • Capacity building of private and public TVET providers participating in partnerships, • Development of a TVET Management Information System (MIS), • Strengthening of co-ordination in policy reform initiatives of the GoE in TVET.

10. SOCIAL DEVELOPMENT Social Fund for Development (SFD) (€155m) March 1998 – June 2005 Objectives: • Contribute to poverty reduction in Egypt Activities: • Improve and expand sustainable job creation in Egypt through credits to micro and small enterprises in order to increase their output and employment. • Provide physical and social infrastructure in targeted, deprived, areas on a demand drivenbasis. • Establish a Management Information System improving the overall transparency, reporting and accountability of the Fund. Financial and Investment Sector Cooperation (FISC)- Social component (€17m) September 2004 –December 2008 Objectives: • Develop effective financial and non-financial services for SMEs. Activities: • Provide a combined package of credit-lines, grants and training to selected NGOs providing micro credits. • Provide credit-lines to banks giving loans directly to SMEs. Children at Risk (€20m) May 2004 – December 2010 Objectives: • Improve the living conditions of several categories of children at risk. Activities: • Provide support to UNDP’s FGM (female genitals mutilation) Free Village Model, • Support the Girls Education Initiative of the National Council for Childhood and Motherhood (NCCM), • Support street-, working and disabled children through calls for proposals. Proposals to be submitted by NGOs specialised in the protection of children at risk.

11. REGIONAL DEVELOPMENT South Sinai Regional Development Programme (€64m) April 2005 – December 2012 Objectives: • The development of local economy and activities and the preservation and support of the social, cultural and natural resources of South Sinai. Activities: • Major infrastructure projects strengthening environmental protection and sustainable development e.g. water, sanitation. • Demand driven projects in social and local development, cultural heritage, public awareness etc, emanating from the civil society and stakeholders in South Sinai through the allocation of grants, following calls for proposals.