FAYOUM WASTEWATER EXPANSION PROJECT

Investment Programme for the construction and expansion of wastewater collection and treatment facilities in the vicinity of Lake Qarun (Fayoum Governorate). The programme will be implemented in two phases.

The project will: - Provide first-time sewerage infrastructure to unserved rural population(more than 800,000 inhabitants); - Improve the living standards and public health of the population by (i) reducing wastewater supply/demand gap; (ii) limiting their exposure to water borne diseases; and (iii) freeing up higher quality water for irrigation; - Improve the environmental conditions in the Fayoum Governorate and Lake Qarun; - Enhance the regional economic activities related to Lake Qarun and employment creation in a governorate where more than 30% of the population lives below the poverty line;

The project is expected to have substantial environmental and social benefits as it addresses the lack of adequate sanitary infrastructure in the rural areas of Fayoum that significantly contributes to the pollution of Lake Qarun, one of Egypt's important natural landmarks with significant historical, natural and scientific importance. In addition, the project will provide much needed employment for skilled and unskilled workers in the region and would contribute to easing the country's unemployment burden. Any potential adverse environmental and social impacts are site-specific and can be prevented and/or readily minimised through appropriate mitigation measures and by adhering to globally recognized performance standards, guidelines, and/or design criteria.

The promoter will be required to implement the project in accordance with EBRD procurement rules and procedures, and in compliance with the requirements and standards agreed between EBRD and the EIB in respect of Procedural Framework between EBRD and the EIB for projects under the Procedural Framework for operations outside the EU, as foreseen in the Bank's Guide to Procurement. In particular, the Bank will require that calls for international tenders be published in the Official Journal of the EU (OJEU) in accordance with the Bank's Guide to Procurement.

This operation is covered by the ELM Guarantee.