The International Finance Corporation (IFC) has announced a strategic partnership with Orascom Development Egypt (ODE), the largest subsidiary of Orascom Development Holding (ODH), Invest-Gate reports.

The collaboration aims to enhance energy and water efficiency while reducing greenhouse gas (GHG) emissions across ODE’s hotels in El Gouna, a prominent coastal destination on Egypt’s Red Sea.

As part of the initiative, IFC provides ODE with a $155 mn sustainability-linked Loan (SLL), including tranches of $96 mn and €55 mn. The loan will finance green improvements and growth projects in El Gouna, such as renovations at Mövenpick Resort and Spa El Gouna. Also, it will refinance some of ODE’s existing debt, improving its financial profile.

The SLL framework, verified by Moody’s, is the first of its kind and was issued by an Egyptian tourism and real estate company. It supports impactful measures, including heat pumps, solar heaters, and water conservation systems, and aims to cut non-renewable energy consumption by 50% and water usage by 20%.

Moreover, IFC will assist ODE in achieving EDGE (Excellence in Design for Greater Efficiencies) certification for its hotels. EDGE is an IFC innovation promoting resource-efficient buildings through accessible and cost-effective solutions.

“This partnership with IFC marks a pivotal milestone in Orascom Development’s journey towards fostering resilient, sustainable, integrated communities,” said Omar El Hamamsy, Group CEO of Orascom Development. “Our environmental commitment is reflected in proactive measures to enhance energy efficiency and water conservation across our destinations.”

Sérgio Pimenta, IFC’s Vice President for Africa, emphasized the project’s importance: “Egypt’s tourism industry is a major contributor to employment and economic growth. Our partnership with ODE supports a more sustainable and robust tourism sector in Egypt.”

This initiative aligns with the World Bank Group’s Country Climate and Development Report (CCDR) and Country Partnership Framework (CPF) for Egypt, integrating climate ambitions with development goals and bolstering private sector resilience. Notably, since 1975, IFC has invested approximately $9 bn in Egypt across various sectors.