EBRD Supports Launch of Inter-City Electric Bus Fleet in Egypt

Strategic Insights -

The European Bank for Reconstruction and Development (EBRD) is supporting the launch of an inter-city electric bus fleet in Egypt through a EUR10.6 million loan to Go Bus for Transport, the country's first privately owned inter-city bus company. The loan will benefit from 10 per cent first-loss risk cover provided by the European Union (EU) through its European Fund for Sustainable Development Plus (EFSD+). This initiative will enable Go Bus to expand its operations and renew its fleet with up to 30 new buses, six electric micro-buses, and three other electric vehicles, providing a cleaner, more sustainable alternative to traditional transportation methods. The loan will also include a comprehensive technical cooperation package and training opportunities for new fleet drivers to address safety risks in Egypt's transport system.

Key Takeaways:

  • The EBRD has provided a EUR10.6 million loan to Go Bus for Transport to support the launch of an inter-city electric bus fleet in Egypt.
  • The loan will be accompanied by a EUR1 million grant from the EU's EFSD+ programme to support corporate governance and a EUR350,000 technical cooperation package from the EBRD's Southern and Eastern Mediterranean Multi-Donor Account.
  • The project aims to introduce electric vehicles to provide a cleaner, more sustainable alternative to traditional transportation methods, easing congestion and reducing emissions.
  • The loan will benefit from 10 per cent first-loss risk cover provided by the EU through its EFSD+ initiative.
  • Go Bus will expand its operations by acquiring up to 30 new buses, six electric micro-buses, and three other electric vehicles.
  • The company will provide training opportunities for new fleet drivers to address safety risks in Egypt's transport system, with a focus on preventing and responding to gender-based violence and harassment.
  • The EBRD has invested over EUR13.5 billion in Egypt's economy since the start of its operations in the country in 2012.
  • Go Bus was established in 1998 as Egypt's first privately owned inter-city bus company, fully owned by the Nassif family.

Statistics:

  • The loan of EUR10.6 million will be used to purchase up to 30 new buses, six electric micro-buses, and three other electric vehicles.
  • The EU's EFSD+ programme will provide a EUR1 million grant to support corporate governance.
  • The project is expected to benefit approximately 1.9 million passengers annually.
  • The EBRD has invested over EUR13.5 billion in Egypt's economy since 2012.
  • The EU's EFSD+ initiative has a global guarantee capacity of EUR39.8 billion for the period from 2021 to 2027.
  • Egypt is a founding member of the EBRD and has been a key partner in the Bank's operations since 2012.

Sources:

  • European Bank for Reconstruction and Development (EBRD) press release
  • European Union (EU) European Fund for Sustainable Development Plus (EFSD+)
  • Go Bus for Transport
  • United Nations (UN) study on gender-based violence and harassment in Egypt's public transport system
  • European Bank for Reconstruction and Development (EBRD) Annual Report 2022