Egypt’s EPAP funds industrial pollution control: The Egyptian Environmental Affairs Agency signed three funding agreements worth c. EUR 22 mn with El Nasr for Fertilizers and Chemical Industries (Semadco), packaging solutions provider Flex Films and food packaging player Huhtamaki Egypt to support industrial pollution control projects by the companies based in the Suez Canal Economic Zone, according to an Egyptian Environment Ministry statement. The agreements fall under the ministry’s Egyptian Pollution Abatement Programme (EPAP), which is now in its third phase since the program’s launch in 2015, the statement notes.

What is EPAP? The program is a wide-scale initiative launched in the early 1990s by the ministry to help industries reduce energy and resource consumption and comply with environmental regulations, according to its website. It provides a mix of loans and grants to industries, with financial backing from parties including the EU, the French Development Agency (AFD), The European Investment Bank (EIB), and German development bank KfW.

Where are the funds going? Some EUR 11.8 mn will finance Semadco’s EUR 13.56 mn industrial waste disposal station project in Suez. The project aims to reuse industrial wastewater and improve the quality of the wastewater deposited directly into the Red Sea by lowering ammonia, nitrate and dissolved salts levels. The station is set to begin operations in 4Q 2023, the statement notes.

And a bit more for recycling: Felix Films will get EUR 7 mn from EPAP to help fund its EUR 16.05 mn Polyethylene terephthalate (PET) project, according to the statement. The project aims to recycle plastic packaging waste and slash indirect GHG emissions, reducing the company’s carbon footprint. Operations will commence during 3Q 2023. Some EUR 2.84 mn will be provided to Huhtamaki Egypt’s EUR 3.6 mn ethyl acetate project which aims to recycle the solvent used in the industrial process by 95%. The project’s trial operations are currently underway, according to the statement.

Why does this matter? Environmental degradation is costing Egypt some EUR 2.2 bn a year, according to AFD data. EPAP aims to bridge a financing gap for pollution abatement investments estimated at EUR 280 mn, the agency adds.