Ministry of State for Environmental Affairs Egyptian Environmental Affair Agency (EEAA) Environmental Protection Fund (EPF)

EPF Plan for Facing Environmental Pollution Introduction: 1. The Environmental Protection Fund supports this year environmental projects within the framework of the projects competitive program. 2. Usage of the Grant and Soft Loans mechanisms for the following parties:  Governmental agencies, universities, research centers and NGOs in governorates.  Industrial projects (public – business – private).  Support the projects that deal with the establishing, developing and maintaining natural protectorates.

1. Encourage projects which adopt cleaner productions techniques and recycling of the available resources. 2. Participate in the funding and support of other programs. Environmental Priorities

The Fund’s environmental priorities in this area include initiatives that aim at: Protection of water resources. Protection of water resources. Protection of marine environment and coastal marine waters from pollution resulting from industrial and tourism activities. Protection of marine environment and coastal marine waters from pollution resulting from industrial and tourism activities. Pollution resulting from the discharge of untreated domestic wastewater. Pollution resulting from the discharge of untreated domestic wastewater. Other sources of pollution. Other sources of pollution. First: Environmental Priorities in the Area of Water Quality and Quantity

Environmental Priorities in the Area of Water Quality and Quantity (Cont.) In this domain, the Fund particularly encourages projects that aim at: Reduction of water consumption in industry and other sectors. Reduction of water consumption in industry and other sectors. Prevention and abatement of pollution resulting from domestic and industrial wastewater. Prevention and abatement of pollution resulting from domestic and industrial wastewater. This category includes projects aiming at: This category includes projects aiming at:  Preventing pollution.  Cleaner production methodologies.  Waste reduction.  Conservation of resources (water, energy, chemicals … etc).  Sound environmental management and environmental awareness.  Improve sanitation systems in rural and remote areas.

Second: Environmental Priorities in the Area of Air Pollution Control The Fund’s priorities in the area of air pollution include initiatives that aim at reducing emissions of pollution from stationary sources and improving air quality especially in crowded residential and industrial areas. The Fund’s priorities in the area of air pollution include initiatives that aim at reducing emissions of pollution from stationary sources and improving air quality especially in crowded residential and industrial areas. In this area, the Fund encourages projects that aim at: In this area, the Fund encourages projects that aim at:  Reducing air pollution resulting from industrial processes  Encourage projects which reduce the emissions of harmful pollutants  Relocating small workshops engaged in polluting activities to new industrial areas.  Increasing the area of green spaces  Renewable energy sources projects

Third: Environmental Priorities in The Area of Hazardous And Solid Waste Management The Fund’s priorities includes initiative that aim at: Protecting the environment and public health from pollution caused by all types of wastes. Protecting the environment and public health from pollution caused by all types of wastes. The Fund encourages projects that aim at: The Fund encourages projects that aim at: Solving the waste problem throughout an integrated environmental system that: Solving the waste problem throughout an integrated environmental system that:  Reduces the amount of waste generated.  Recycles, reuses, sorts and segregate waste at the source  Safe transfer, treatment and disposal of solid waste.  The Fund also encourages private sector investment initiatives in this area and the importance of establishing cost recovery systems for effective solid waste management.

Fourth: Environmental Priorities in the Area of Nature Conservation and Management The EPF supports initiatives that aim at protecting biodiversity at the national level. The EPF supports initiatives that aim at protecting biodiversity at the national level. In this area, the Fund specifically targets projects that are initiated by: In this area, the Fund specifically targets projects that are initiated by:  Central Department for Nature Conservation.  Private sector and non-governmental organizations  In the following fields:  Tourism related services and eco-tourism.  Operation and maintenance of docking facilities including docks that are designed to provide wastewater collection.  Natural protectorates.

SUPPORT PROGRAMS Following is a description of the various support mechanisms which are implemented throughout the year and their respective conditions and terms: Grants Grants Soft Loans Soft Loans Contributions Contributions NGOs Funding program NGOs Funding program

Grants Program A. The Applicants: Governmental Agencies (2.5 million L.E) Governmental Agencies (2.5 million L.E) Universities and research centers in condition that the projects are applicable and not researches (1million L.E) Universities and research centers in condition that the projects are applicable and not researches (1million L.E) Support NGOs Unit in EEAA (2 million L.E) Support NGOs Unit in EEAA (2 million L.E) Natural Protectorates (2 million L.E) Natural Protectorates (2 million L.E)

Grants Program (Cont.) B. Conditions applied for acquiring the fund: The project targets any of the Fund’s environmental priorities as mentioned above The project targets any of the Fund’s environmental priorities as mentioned above Project has to achieve revenues enough to recollect the investment cost after a specific time period. Project has to achieve revenues enough to recollect the investment cost after a specific time period. Ensure continuity of the project through achieving: Ensure continuity of the project through achieving:  Continuity of operation.  Maintenance.  Replacement and renewal.  Provide the required amounts for the continuity of the project after the termination of the EPF funding.

Grants Program (Cont.) C. Financial Information: Fund contribution up to 60% of project costs with a maximum contribution per project up to LE 350,000. Fund contribution up to 60% of project costs with a maximum contribution per project up to LE 350,000. The applicant’s contribution amounts to 40% of project costs in the form of cash and/or “in-kind” contributions approved by the Fund. The applicant’s contribution amounts to 40% of project costs in the form of cash and/or “in-kind” contributions approved by the Fund.

Grants Program (Cont.) D. Costs Covered by Grants: Purchase and installation of machinery and equipment pertaining to the project. Purchase and installation of machinery and equipment pertaining to the project. Operating expenses including power supply- raw materials- -training of the project’s administrative and technical units. Operating expenses including power supply- raw materials- -training of the project’s administrative and technical units. Other expenditures necessary for project execution – to be identified and approved by EPF. Other expenditures necessary for project execution – to be identified and approved by EPF.

Grants Program (Cont.) E. Disbursement Procedure : Grants are disbursed in accordance with the project implementation time-schedule. Grants are disbursed in accordance with the project implementation time-schedule. Disbursement is conditional on fulfillment of all conditions stated in the contract agreement between the project (project holder) and EEAA (the EPF). Disbursement is conditional on fulfillment of all conditions stated in the contract agreement between the project (project holder) and EEAA (the EPF). Funds are disbursed up to the cash allocations made in each item. No transfer of cash allocations among the various items is authorized without the EPF’s approval. Funds are disbursed up to the cash allocations made in each item. No transfer of cash allocations among the various items is authorized without the EPF’s approval. Upon contract agreement and the Fund’s appoval, a bank account is opened for the project in one of the banks. Upon contract agreement and the Fund’s appoval, a bank account is opened for the project in one of the banks. All receipts and bills pertaining to the various expenditures must be maintained by the project holder. For each payment, the project holder is responsible for submitting to the Fund an orginial copy of all bills and reciepts along with a detailed expenditure statement. All receipts and bills pertaining to the various expenditures must be maintained by the project holder. For each payment, the project holder is responsible for submitting to the Fund an orginial copy of all bills and reciepts along with a detailed expenditure statement.

Soft Loans Program 2 Million L.E are allocated for this program from the EPF budget. 2 Million L.E are allocated for this program from the EPF budget. 25 Million L.E are allocated for this program from the Environmental Policies Program. 25 Million L.E are allocated for this program from the Environmental Policies Program.

Soft Loans Program (Cont.) A. The Applicants: Any small or medium organizations plan to undertake environmental projects. Any small or medium organizations plan to undertake environmental projects. The applying organization demonstrates seriousness, sound reputation, and capacity for project execution and long term project sustainability. The applying organization demonstrates seriousness, sound reputation, and capacity for project execution and long term project sustainability. The applicant should have the ability to acquire loans from one of the banks participating in the revolving funds program. The applicant should have the ability to acquire loans from one of the banks participating in the revolving funds program.

Soft Loans Program (Cont.) B. The Project: The project targets any of the Fund’s environmental priorities as mentioned above. The project targets any of the Fund’s environmental priorities as mentioned above. Project has to achieve revenues to achieve long term sustainability and be able to meet loan payments Project has to achieve revenues to achieve long term sustainability and be able to meet loan payments Approval of the loan by the lending participating bank Approval of the loan by the lending participating bank

Soft Loans Program (Cont.) C. Financial Information: Loan accounts for 60 to 90 percent of total project cost. Loan accounts for 60 to 90 percent of total project cost. Minimum project cost is LE 50,000. Minimum project cost is LE 50,000. Interest rate is 7% on the given loan. Interest rate is 7% on the given loan. Maximum limit for the loan is 4 million L.E per project. Maximum limit for the loan is 4 million L.E per project. The loans are used to fund new and present projects. The loans are used to fund new and present projects. The loan’s period reaches 5 years including the allowance period. The loan’s period reaches 5 years including the allowance period.

Soft Loans Program (Cont.) D. Expenditures: The loan may be used to finance the purchase of equipment, machinery, construction, and working capital as well as any other pollution reduction equipment. The loan may be used to finance the purchase of equipment, machinery, construction, and working capital as well as any other pollution reduction equipment. This does not include any taxes or customs imposed. This does not include any taxes or customs imposed.

Soft Loans Program (Cont.) E. Disbursement Procedure: The loan is disbursed from the EPF account to the lending bank according to the project implementation time schedule which is included in the agreement signed with the applicant. The loan is disbursed from the EPF account to the lending bank according to the project implementation time schedule which is included in the agreement signed with the applicant. The lending bank transfers the loan to the applicant account on the same day. The lending bank transfers the loan to the applicant account on the same day.

Natural Protectorates Support Program 2 Million L.E are allocated for this program. 2 Million L.E are allocated for this program. The main goal of this mechanism is to improve natural protectorates conditions and maintenance. The main goal of this mechanism is to improve natural protectorates conditions and maintenance. This amount is allocated for the natural protectorates till the studies of the presented projects are completed. This amount is allocated for the natural protectorates till the studies of the presented projects are completed.

NGOs Funding Program 2 million L.E were allocated from the EPF budget to support NGOs Unit in the Egyptian Environmental Affairs Agency. 2 million L.E were allocated from the EPF budget to support NGOs Unit in the Egyptian Environmental Affairs Agency. The unit supports environmental projects implemented by the NGOs in governorates through a steering committee. The unit supports environmental projects implemented by the NGOs in governorates through a steering committee. Maximum amount for funding is 125,000 L.E Maximum amount for funding is 125,000 L.E Minimum contribution is estimated by 25% from the cost. Minimum contribution is estimated by 25% from the cost.

Evaluation and Selection Criteria Project targets one or more of the environmental fields that address the Fund’s environmental priorities. Project targets one or more of the environmental fields that address the Fund’s environmental priorities. Applicant's institution is a legally registered local entity. Applicant's institution is a legally registered local entity. Applicant demonstrates the availability of own- resources. Applicant demonstrates the availability of own- resources. Applicant’s institution/organization is of sound reputation. Applicant’s institution/organization is of sound reputation. Absence of any restrictions such as problems related to the applicant’s current activities or relationship with banks (if applicable). Absence of any restrictions such as problems related to the applicant’s current activities or relationship with banks (if applicable). Project ensures sustainability after receiving the loan or the grant. Project ensures sustainability after receiving the loan or the grant.

CriteriaDegree (1) Degree of Importance and Effect: Projects that address serious environmental problems in their specific geographic areas. Projects that address serious environmental problems in their specific geographic areas. Projects that serve a large number of beneficiaries, or provide solutions to urgent environmental problems. Projects that serve a large number of beneficiaries, or provide solutions to urgent environmental problems. Severity of the environmental problem and its impact on health, social and economic aspects. Severity of the environmental problem and its impact on health, social and economic aspects.30 (2) Integration and Sustainability: (2) Integration and Sustainability: Projects which forms a part of a planned integrated system which when implemented provides a sustainable solution for the environmental problems. Projects which forms a part of a planned integrated system which when implemented provides a sustainable solution for the environmental problems. Presence of the sustainability factor in the project even after the end of the support. Presence of the sustainability factor in the project even after the end of the support. Presence of the sustainable development factors. Presence of the sustainable development factors.30

CriteriaDegree (3) Transferring Know-How: Demonstration projects that have the potential for disseminating environmental know-how and technology to others are considered replicable in other areas with similar problems. Demonstration projects that have the potential for disseminating environmental know-how and technology to others are considered replicable in other areas with similar problems. Projects which include activities that will contribute to the dissemination of project results, such as special consultations and workshops, or publication of articles in specialized journals. Projects which include activities that will contribute to the dissemination of project results, such as special consultations and workshops, or publication of articles in specialized journals.20 4) Study and Preparation: Projects, for which there are readily available studies and documents to facilitate quick project start-up and implementation, or projects that are already being implemented. Projects, for which there are readily available studies and documents to facilitate quick project start-up and implementation, or projects that are already being implemented.10 (5) Participation: Environmental projects that integrate and foster partnerships among various stakeholders, agencies and sectors. Environmental projects that integrate and foster partnerships among various stakeholders, agencies and sectors. Projects which contribute to the achievement of developmental objectives such as job generation, poverty alleviation and empowerment of women. Projects which contribute to the achievement of developmental objectives such as job generation, poverty alleviation and empowerment of women.10 TOTAL100

Spreading Awareness about the EPF Activities Awareness is spread about the EPF activities through: Publications. Publications. Press. Press. Television. Television. Internet. Internet. Regional Branch Offices. Regional Branch Offices. Workshops. Workshops. Participating Banks Participating Banks Other participating parties Other participating parties

Application Procedures 1. EPF information file can be acquired through: Environment Protection Fund (EPF) office – Egyptian Environmental Affair Agency (EEAA). Environment Protection Fund (EPF) office – Egyptian Environmental Affair Agency (EEAA). Regional Branch Office. Regional Branch Office. Mail the file to the EPF mailing list. Mail the file to the EPF mailing list. 2. The applications should be submitted to the EPF on special application forms prepared specially for the grants program and the soft loans program. 3. The EPF reviews the support requests for the mentioned criteria.

4. If the applicant did not satisfy eligibility criteria, the Fund will notify the applicant that the project information form has been rejected. 5. For the Soft Loans applications, the Fund will request the bank to determine the applicant’s credit worthiness status. 6. Project evaluation will be then completed and arranged according to the EPF evaluation standards. The Fund will present the projects on the EPF Management Committee to select the winning projects that will receive support. 7. Applications can be submitted for the Soft Loans program throughout the financial year starting from 1/7/2005. Application Procedures (Cont.)

Time-Schedule for Implementing the EPF Annual Plan Activities May2005June2005July2005Aug.2005Sep.2005Oct.2005Nov.2005Dec.2005Jan2006Feb.2006March2006April2006May2006June2006 Media Campaign Receiving & reviewing applications Evaluating & selection of projects Funding projects Evaluation & Follow-up