Monday, November 25, 2024 The International Finance Corporation (IFC) has announced a partnership with Orascom Development Egypt (ODE) to foster sustainable tourism in Egypt, primarily through a $155 million sustainability-linked loan (SLL). This initiative aims to enhance energy and water efficiency while reducing greenhouse gas (GHG) emissions in hotels within El Gouna , a premier tourist destination along the Red Sea . The partnership, highlighted in an official press release, underscores Egypt’s growing emphasis on sustainable development, particularly in its tourism sector, which plays a critical role in the country’s economy.
The SLL provided by IFC consists of two distinct tranches— $96 million and €55 million —designed to refinance part of ODE’s existing debt while supporting sustainability goals. The loan’s objectives include a 50% reduction in energy consumption from non-renewable sources and a 20% decrease in water usage at ODE’s hotels. This dual focus on energy and water efficiency not only aligns with Egypt’s climate commitments but also ensures cost savings and operational sustainability for Orascom Development.
Omar El Hamamsy , Group CEO of Orascom Development, expressed the company’s dedication to creating destinations that align with nature while boosting Egypt’s economic development. He emphasized that the funding facility will enable ODE to optimize financing terms by lowering the cost of capital, improving liquidity, and maintaining.
