The Egyptian government has approved a $300 million loan agreement with the Asian Infrastructure Investment Bank (AIIB) to finance crucial sanitations projects in Egypt.
On Aug. 8, Egyptian President Abdel Fatah al-Sisi issued a decree approving the deal, which was originally signed in December 2018 and approved by the House of Representatives in April.
An estimated 90 percent of households in urban areas are covered by public sewers compared to only 19 percent in rural areas, where 42 million people are underserved and are often faced with overflowing sewage from traditional septic tanks, according to a document detailing the project.
The government is looking to carry out key sector and institutional reforms to increase basic sanitation coverage and provide safe drinking water in rural areas.
The entire project is expected to cost a total of $694 million, for which the World Bank will provide another $300 million and the remaining to be covered by the borrower.
The AIIB is reportedly looking to bolster its investment projects in Egypt, a crucial market in the Middle East and Africa, reported Egypt Today.
The Beijing-based bank has 72 member countries and 28 non-regional members, which include Egypt and has $8.53 billion in total investments.
Read more about the project here.