Knowledge Note

"Sustainable Energy Subsidy Reform in Egypt."

With fossil fuel subsidies being a major contributor to the country’s deficit, energy subsidy reform was a strategic priority for the Government of Egypt. Beginning in 2014, the Energy Sector Management Assistance Program (ESMAP), through its Energy Subsidy Reform Facility, has provided technical advice and analytical support to the Government of Egypt in the reform and capacity building processes of its power sector. ESMAP provided the tools and models to project the impacts of the reform, convincing the government that energy sector reform could be achieved in a socially responsible manner. The support contributed to the fuel and electricity reforms in 2014, 2015, and 2016, as well as reforms to fuel prices and social safety net programs. ESMAP’s engagement opened doors for broader sector reform dialogue, leading to a three-year, multi-billion multi-donor WB-IMF loan.