The International Finance Corporation (IFC) announced on Sunday that it has partnered with Orascom Development Egypt (ODE), the largest subsidiary of Orascom Development Holding (ODH), to support the Egyptian tourism leader in inspecting and designing buildings to improve energy and water efficiency and reduce carbon emissions (GHG) emissions from several hotels in its main location in El Gouna, Egypt.
Egypt is a major tourist destination with its history, culture and beaches. Tourism contributes significantly to the country’s economy, accounting for 8% of GDP and providing employment for 2.5 million people by 2023, with an additional 1.5 million jobs expected to be created in the next 10 years.
By helping green the Egyptian economy, the country can increase its economic competitiveness and reduce operating costs, ultimately promoting sustainable and inclusive growth.
IFC has provided ODE with a fixed income loan (SLL) totalling $155 million, including $96 million and €55 million. The SLL will provide green development and development to developers on El Gouna’s popular Red Sea coast, including the refurbishment of the Mövenpick Resort & Spa El Gouna.
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SLL will help Orascom Development implement effective measures to improve investment, including electric pumps, solar water heaters and responsible water conservation in its hotels, thus reducing energy consumption and reducing energy consumption by up to 50% and minimum water consumption by 20%.
In addition, the SLL will be used to refinance part of the company’s existing debt and improve the company’s debt profile. The SLL framework is recognized by Moody’s and will be the first framework created by Egyptian tourism and real estate companies.
IFC will also help Orascom Development achieve Green Building EDGE certification for its hotel in El Gouna. EDGE is a new technology from IFC that makes using the technology fast, easy and efficient.
The plan is based on the World Bank Group’s Egypt Country Security and Development Report (CCDR), which identifies opportunities to improve the balance between the country’s development strategy blueprint and its air needs. It also falls within the scope of the World Bank Group’s Egypt Country Partnership Program (CPF), which aims to foster more and better private sector activity and the country’s anti-shock system.
Since its launch in Egypt in 1975, IFC has invested and raised approximately $9 billion in investment projects and has $24 million in advisory services in the country. IFC’s support for Egypt’s private sector focuses on fintech, financial security, manufacturing, infrastructure, renewable energy, healthcare, gender equality, and other areas.
