EBRD must not back Egyptian coal imports

Cairo — Ahead of tomorrow’s Board vote on the EBRD loan to CEMEX Egypt, a number of civil society organisations [*], inlcuding Egyptian groups, urge the bank to reject this project not only because it involves support for dirty coal-based production but also because it actually means promoting the plans of a repressive government despite opposition from civil society.

On February 25, the EBRD Board of Directors is expected to vote on whether to approve or not a loan of up to 50 million euros to Assiut Cement Company, an Egypt subsidiary of multinational CEMEX, which would constitute almost the entire costs of a programme of “fuel conversion and environmental upgrade”. In reality, the loan would allow the company to switch from natural gas to a combination of coal and alternative fuels (biomass, refuse-derived fuel, and/or tire-derived fuel) for its cement production operations.

“This is a loan that goes completely in the wrong direction, by making the switch from natural gas to coal which is much more polluting. Having no domestic resources, Egypt will also need to construct the whole coal import infrastructure from scratch, an expensive wasteful endeavour taking away the money from solving the burning social issues that plague the majority of the Egyptian citizens” says Bankwatch’s MENA coordinator Kuba Gogolewski. “Of great concern are also the heavy metals such as mercury and lead which will be released in Egypt’s waterways as a result of these industrial processes, especially in the context of this country’s poor track record in addressing industrial water pollution.”

“In addition, this project is promoted by the undemocratic government of Egypt, to the benefit of the cement industry which is very powerful in this country, and in opposition to civil society which has been campaigning against the switch to coal,” says Xavier Sol, Counter Balance director. “The EBRD, which has a mandate to promote democracy in its countries of operation, should not be seen anywhere near this project which would please multinationals and a repressive government and pass the pollution costs onto the citizens who have been opposing it.”

[*] Organisations signing the letter are: Bankwatch, Counter Balance, Platform, urgewald, Re:Common, Egyptian Center for Economic and Social Rights (ECESR), Centre national de coopération au développement (CNCD-11.11.11), the Habi Center for Environmental Rights.

For more information, please contact:

Kuba Gogolewski
Bankwatch MENA coordinator
Kuba.gogolewski@bankwatch.org
0032485358317

Xavier Sol
CounterBalance Director
xavier.sol@counter-balance.org
0032(0)28930861

Notes for the editors:

1. Read the letter sent by Bankwatch and other NGOs to the EBRD concerning this loan:
https://bankwatch.org/sites/default/files/letter-EBRD-Egypt-gas2coal-20Feb2015.pdf

2. Read about EBRD support for Egyptian coal projects:
https://bankwatch.org/bwmail/59/concrete-boots-already-new-ebrd-energy-policy-potential-support-egyptian-coal-projects- and https://bankwatch.org/news-media/blog/guest-post-ebrd-justification-supporting-coal-egypts-cement-industry-negligent