Environmental Compliance Office
Policy measure

In 2002, the Environmental Compliance Office (ECO) at the Federation of Egyptian Industries (FEI) was established by the Egyptian government. ECO is a consulting unit which provides environmental services to SMEs that are members of the Federation of Egypt Industries (FEI). The objective of the fund is to encourage and support anti pollution initiatives in Egypt to ensure that industry complies with environmental laws. The revolving fund therefore secures financial support for projects with an economic and environmental impact.

Implementation

Among other activities, “ECO provides access to soft loans for funding industrial equipment serving Clean Production application and energy saving. Loan amounts could reach EGP 3 million per enterprise carrying a 2.5% annual interest rate with one year grace period and a repayment period up to five years. These loans could be obtained through the National Bank of Egypt or other participating banks.”


ECO reports the following funding structure:

  • Investment costs of LE 100.000 or less: 5 percent enterprise share and 95 percent loan value.

  • Investment costs of more than LE 100.000 up to LE 1.000.000: 10 percent enterprise share and 90 percent loan value.

  • Investment costs of more than LE 1.000.000 up to LE 2.000.000: 20 percent enterprise share and 80 percent loan value.

  • Investment costs of more than LE 2.000.000 up to LE 3.000.000: 30 percent enterprise share and 70 percent loan value.

Challenges
No identified challenges.
Outcomes

Although documentation exists on successfully implemented projects by ECO, none of them specifies the influence of funding. 

References

Federation of Egyptian Industries (FEI) (ND). Environmental compliance office and sustainable development Supporting small and medium enterprises. Available at: www.fei.org.eg/ECO%20English.pdf.