Language: English

Original: English

AFRICAN DEVELOPMENT BANK

Grant Proposal for Financing under the MENA TRANSITIONAL FUND: Green Growth: Industrial Waste Management and SME Entrepreneurship Hub in Egypt

COUNTRY: Arab Republic of Egypt

Questions on this document are to be addressed to

G. El Sokkary, Team Leader, Principal Socio-Economist EGFOS. Tapsoba, Resident Representative, EGFOM. Youssouf, Manager, OSHD1.A. Soucat, Director, OSHDJ. Kolster, Director ORNAExternal to the Bank:A. Abo Sena, Deputy Director, Egypt National Cleaner Production CenterM. Samy, Industrial Council for Technology and Innovation, EgyptH. El Hadary, Chairperson, Industrial Council for Techology and Innovation, Egypt

Date: April 201

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1. Acronyms and Abbreviations

ADF African Development FundAFD Agence Francaise de DeveloppementAfDB African Development Bank GroupBoD Board of DirectorsBDS Business Development ServicesCIDA Canadian Development AgencyCSP Country Strategy PaperDPG Development Partners GroupEBRD European Bank for Reconstruction and DevelopmentEGFO Egypt Field OfficeEGP Egyptian PoundEIB European Investment BankENCPC Egypt National Cleaner Production CenterEU European UnionFDI Foreign Direct Investment

G8 Group of Eight representing governments of largest economies in the world

GAFI General Authority for Investment and Free ZonesGDP Gross Domestic ProductGHG Greenhouse Gas EmissionsGIZ German International Development AgencyGoE Government of Egypt

ICTI Egypt’s Industrial Council for Technology and Innovation

IDA Industrial Development Authority of EgyptIFAD International Fund for Agricultural DevelopmentILO International Labour OrganizationISA Implementing Support Agency (under MENA TF)IMF International Monetary FundIWEX Industrial waste exchange systemJICA Japanese Development OrganizationLoC Line of CreditMoPIC Ministry of Planning and International CooperationPCR Program Completion ReportPIU Project Implementing UnitPPP Private public partnershipPSC Project Steering CommitteeMSMEs Micro, Small and Medium EnterprisesNGO Non-Governmental OrganizationSFD Social Fund for DevelopmentSME Small and Medium EnterprisesUN United NationsUNIDO United Nations Industrial Development AgencyUSAID The U.S. Agency for International DevelopmentUSD United States of America DollarWB World Bank

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1. Introduction

The Deauville Partnership is an initiative launched by the G8 to support the countries of the Arab Spring as they move in a transitional phase. Within that framework, the MENA Transitional Fund was established as a broad-based technical assistance program to finance country-owned projects that aim at introducing reforms at the governance, social and economic levels. As an eligible recipient, the Government of Egypt has requested the collaboration of the African Development Bank, as an Implementation Support Agency, to assist in the preparation and implementation of an innovative pilot project which would support the creation of green jobs and entrepreneurship development in the untapped field of industrial waste management. Through the establishment of an industrial waste exchange system (IWEX), positioned as an industrial symbiosis program, linkages would be made between waste generators, waste users and recyclers, thus creating opportunities for employment whilst contributing to the reduction of greenhouse gas and the related health risks caused by mismanagement of industrial waste. This proposal, for a total amount of USD 2 Million, has been prepared for that purpose.

1.1 Background Information

1.1.1 Two years after the onset of the 25th of January 2011 revolution, Egypt is still in a transitional phase confronted with major economic and societal challenges. Economically, the country’s GDP growth rate reached 2.2 % for the fiscal year 2011-2012 compared to 5.4% before the revolution. Unemployment rose from 9.4% pre-revolution to 13% with some 3.5 million unemployed persons, of whom a large majority are youth. Dividends of the revolution have not been felt, leaving citizens highly frustrated and yearning for stability, prosperity and social justice.

1.1.2 Driven by the private sector and accounting for almost 20% of the GDP and 23% of employment, the industrial sector is critical for Egypt’s economic growth and for employment generation. Traditionally focused on heavy and labor-intensive sub-sectors such as iron, steel, petroleum, spinning and weaving, the industrial sector has evolved and diversified over the years to include agro-processing, ready-made garments and leather manufacturing, paints and tiles, furniture, automotive feeding industries, etc. The government has supported the industrial sector through various initiatives including the creation of industrial zones, the establishment of dedicated specialized councils representing the private sector and advocating for their demands, facilitation of private public partnerships and provision of support services through specialized entities such as the Innovation and Technology Council and its sub-councils. 1.1.3 Given that SMEs make up 99% of the non-agriculture private sector, they are crucial stakeholders in the industrial sector both in terms of firms operating in the sector as well as feeding industries for the larger private and public sector firms. According to a 2012 census conducted by the Egyptian Banking Institute, 51% of SMEs operate in the manufacturing sector, largely in the food and beverage sub-sector followed by the textile sub-sector. It is estimated that SMEs account for a substantial percentage of GDP and for 75% of employment.

1.1.4 While SMEs are positioned as a key driver for economic growth and job creation, they face a number of financial and non-financial challenges. While access to finance for

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SMEs is being addressed at various levels and through a number of initiatives, non-financial challenges remain largely unresolved. These include areas such as registration and obtaining permits, entrepreneurship skills, technical knowledge and training, marketing and distribution, quality considerations and certification, integration in the supply value-chain and access to accurate, timely information on markets and their needs.

1.1.5 There is untapped potential for entrepreneurship and skills development in the area of management and utilization of industrial and hazardous wastes, which has high potential for business to business transactions, resource efficiency and climate change mitigation. International experience has proven that re-used and recycled industrial waste is a valuable source for energy generation, employment creation, and climate change mitigation if well utilized and managed. While estimates for energy generation and climate change mitigation are based context-specific, global estimates indicate that recycling-based manufacturing generates 25 jobs for each 10,000 tons of recycled solid waste per year. In Egypt, the volume and composition of waste generated annually is as follows: 21 million tons of municipal solid waste, 23 million tons of agricultural waste, 6.2 million tons of industrial waste, 0.2 million tons of hazardous waste and 28,500 tons of medical waste. Industrial waste consists of 12.5% of all waste generated. On the assumption that 50% of industrial solid waste can be recycled, 8000 direct jobs can be generated annually, in addition to a multitude of indirect jobs, while ensuring growth of business-to-business, resource efficiency and reduction of Greenhouse Gas (GHG).

1.1.6 Currently, industrial waste, considered non-valuable, is being disposed of through landfills and illegal dumping, generating GHG emissions that contribute to climate change and have a negative impact on the health of Egyptian citizens. Methane emissions for landfills represent the largest source of GHG emissions in the waste sector. Waste prevention and resource recovery through re-usage/recycling are key activities for climate change mitigation. In addition, waste mismanagement coupled with pollution are recognized as key factors towards the increase in the burden of disease over the last decade and the prevalence of increased malnutrition and stunting of the population. The impact on the health of citizens has thus been direly affected, resulting in increasing health expenditures and a degradation of the quality of life of citizens.

1.1.7 Contrary to agricultural and municipal waste, solid waste from the industrial sector is simpler to manage particularly given that most of the solid waste emanates from some 28,000 facilities nationwide, a majority of which are concentrated in industrial zones. The Greater Cairo region alone hosts almost 50% of all industrial activities, and includes areas such as the 10 th of Ramadan industrial zone where 2500 industrial establishments operate in a variety of sectors known to be intensive generators of industrial waste, such as food processing, chemical industries, building materials, textiles and engineering industries.

1.1.8 The proposed project builds on the ability to develop entrepreneurship and create green jobs through the establishment of a sustainable industrial waste exchange (IWEX) system that links waste generators to waste users and recyclers to enhance resource efficiency across the different industrial sectors. The project will also contribute to reducing the adverse environmental impacts from the bad disposal of industrial and hazardous wastes,

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thereby reducing GHG emissions as well as contributing to the reduction of health related expenditures

The Implementing Agency: The Egypt National Cleaner Production Center

1.1.9 The project will be implemented by the Egypt National Cleaner Production Centre (ENCPC), under the Industrial Council for Innovation and Technology, mandated to promote the transfer of green technologies and innovation within the Egyptian industry whilst supporting the private sector in productivity enhancement and environmental performance towards improved competitiveness. Established as a project in 2005 by the United Nations Industrial Development Organization (UNIDO) and the Ministry of Foreign Trade and Industry (MIFT), the ENCPC has evolved to become an integral part of the Industrial Council for Technology and Innovation (ICTI) established through ministerial decree 186 for 2010 to assist the industrial sector stakeholders in promoting technology and innovation. The Board of Directors of the ICTI includes representatives from the various industries, thereby ensuring the private sector client-orientation of the council. The ICTI operates through dedicated sub-councils and specialized entities, including the ENCPC, which provides technical assistance for technology transfer in the fields of resource efficiency, industrial waste valorization in addition to energy efficiency and renewable energy applications. The center initiates the implementation of innovative designs and supports companies towards constant product development. The ENCPC is part of the global network of cleaner production centers promoted through UNIDO, and thus has extensive outreach capabilities and access to global and national expertise. Bank’s Support of job creation through the MSME sector in Egypt

1.1.10 The Bank is one of the main development partners supporting access to finance for MSMEs in Egypt towards job creation and economic development. The Bank has four sovereign-guaranteed projects in support of MSMEs based on lines of credit, of which three are implemented by the Social Fund for Development (SFD): (i) a USD 87.15 M to the SFD under the Micro and Small Enterprise Support Project for on-lending through partner financial intermediaries, which has been fully disbursed; (ii) a USD 70 M to the SFD for on-lending to support agribusiness development; (iii) a USD 40 M to the SFD to support small scale franchising, under the Franchising Sector Support Programme; and (iv) a LoC for USD200 M to the National Bank of Egypt, which has been fully disbursed. Implementation of all on-going projects is proceeding in a satisfactory manner.

1.1.11 The Bank is also providing support in non-financial services to MSMEs, through grant financing associated to the lending projects. The grant activities cover a range of assignments related to institutional capacity building, awareness raising and dissemination of information, provision of technical skills, and provision of pilot initiatives such as a crop-based micro-insurance product in a given area. In addition, under the newly established MENA Transitional Fund, the Bank was able to secure USD 2M in funding to support cluster development of informal MSE and assist in integrating them within the formal sector. This proposal was approved in February 2013, and will be implemented by the Social Fund for Development.

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Donor’s support to MSMEs and towards Waste Management

1.1.12 Support to MSMEs in Egypt is largely channelled through the Social Fund for Development, mandated since 2004 to be the coordinator for micro and small enterprise development. Many donors work with the SFD to support channelling finance to MSEs as well as for the provision of business development services. As such, CIDA, the EU, IFAD, JICA, AFDB, WB, AFD, EIB and more recently, EBRD and USAID have worked in some capacity with the SFD.

1.1.13 Donors working on waste management in Egypt, include most notably the GIZ, KfW, USAID, WB, the EU and UNIDO. Given the wide scope under waste management, donors work with several entities at the national level, including the Egyptian Environmental Affairs Agency (EEAA) and Egypt’s Cleaner Production Center (ENCPC) as well as with municipal entities at the local level. GIZ has an important solid waste management programme which focuses primarily on municipal waste. It is expected to include a component on industrial waste at a later stage, and consequently the outcome of this particular project will serve to inform GIZ on the potential applicability and scalability of an Industrial Waste Exchange (IWEX) system at a national level.

1.2 Project Objectives

1.2.1 The project’s objective is to develop a sustainable and integrated industrial waste exchange (IWEX) system in one industrial zone, positioned as a Green Entrepreneurship Hub, linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and contribute to the enhancement of lives of Egyptian citizens. The project will address the lack of an effective industrial waste management system in Egypt which is essential for realizing the potential of the Egyptian industrial sector as a major contributor towards sustainable growth.

1.2.2 The direct beneficiaries of the project will be the private sector firms and entrepreneurs located in the selected pilot area, who will benefit from the IWEX and the job opportunities to be created. The indirect beneficiaries will be the Egyptian citizens at large.

1.3 Proposal Preparation

1.3.1 This proposal was prepared through a collaborative effort by a team from the ENCPC, the Innovation and Technology Council under the Ministry of Industry, and the AfDB Egypt Field Office. This is in line with the MENA Transitional Fund’s requirements, whereby the AfDB will act as the Implementing Support Agency (ISA) for this proposal providing the implementing agency, the ENCPC, with the necessary oversight, guidance and assistance required. In addition, the AfDB rules and procedures will be used throughout the implementation of this project, as per the ISA criteria.

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1.4 Justifications and Rationale for the Use of Resources:

1.4.1 The proposed project will seek to establish, for the first time in Egypt, an industrial waste exchange system dedicated to a specific industrial zone as a pilot. The exchange system will be based on an inventory that contains accurate and timely information on the industrial waste available, by type, volume, etc. By linking waste generators, recyclers and users, the project will contribute to the following direct and indirect benefits: (i) generating new and innovative business opportunities and creating jobs in the field of waste management; (ii) potential decrease in imports due to re-utilization of locally available items; (iii) decrease in GHG emissions that emanate from landfills and other conventional methods of treating waste; (iv) enhancing technology transfer in waste management.

1.4.2 The proposed pilot project includes a policy component to promote an enabling environment for industrial waste exchange in Egypt. Building on the outcomes of the pilot under this project, these outcomes of the project can be scaled up to the national level. In addition the project is based on the premise of a strong private public partnership, since it is a public sector implemented initiative which not only caters to the private sector needs but also includes private sector representation throughout the full cycle of implementation guaranteed by the project advisory board and the Board of Directors of the ENCPC and the ICTI.

1.4.3 The project is aligned with the GoE’s national strategy including Egypt's Industrial Development Strategy (2006-2025) which positions the industrial sector as an engine of growth, employment creation, and export promotion; the 8th Egyptian Competitiveness Report, issued in 2012, which underlines waste management as a crucial element of Egypt's sustainable and green economy; the National Strategy For Cleaner Production in Egyptian Industry, issued in 2003 and updated in 2009, which highlights the need for reducing industry-generated discharges to the environment; and "Egypt, The Way Ahead", September 2011, which included amongst its prioritized areas for collaboration under the Deauville Partnership, policies geared towards strong and sustainable growth that promotes job creation and macroeconomic stability; human and institutional development, including strong legal frameworks and good governance; technological transfers including in the field of green economy; and SMEs development.

1.4.2 The project is aligned with the Bank’s Interim Country Strategy Paper for Egypt 2012-13, and its two main pillars. Under Pillar 1: Stabilization and Economic Recovery, the project will contribute to the institutional framework to support growth under sub-pillar one and to the private sector development and in particular private-public-partnership growth-led agenda, under sub-pillar two. Under Pillar 2: Inclusive Growth to Reduce Poverty, the project will contribute to SME development through the support of private activities with high job creation potential and through transformational training. The project is also aligned with the Bank’s proposed Human Capital Development Strategy, 2013-17 and Long Term Strategy as well as the Bank’s Green Growth Framework.

2. Project Description

2.1 The project consists of the following five components:

Component 1: Mapping of the industrial waste at the enterprise level in the selected pilot area: Under this component an inventory of the industrial waste generated and

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required by potential users and recyclers will be developed. The inventory will cover the enterprises located in an industrial zone, possibly 10th of Ramadan which enjoys a high industry concentration, with 2500 industrial enterprises, as well as large volume and diversity of industrial wastes. The inventory will be positioned as the database for a "Green Innovative Entrepreneurship hub" for entrepreneurs seeking the opportunity to establish their own innovative businesses in the areas of industrial waste management.

Sub-component 1.1: Data collection and analysis of the industrial waste in the identified pilot area: (i) Collecting, reviewing and analysing data on the manufacturing facilities in the selected pilot area; (ii) Conducting a survey to map the industrial waste generated and the anticipated waste required; (iii) Validating the survey results through stakeholder round table consultations.

Sub-component 1.2: Developing an inventory and database of the industrial waste through (i) Reviewing Best Practices in industrial waste inventory systems, and adapting a system to Egypt; (ii) Designing the structure and developing the content for the inventory, to be hosted within Egypt’s National Cleaner Production Centre, under the Industrial Council for Technology and Innovation; (iii) Launching the industrial waste inventory in the form of an online database to include the following information: Types, quantities and locations of industrial wastes; Specifications, physical properties and composition of wastes; Potential applications of each type of waste; Techniques and technologies than can be used for waste management; (iv) Developing a system to manage and update the database, including the introduction of a registration fee for sustainability purposes.

Component 2: Developing policy recommendations towards an enabling environment for industrial waste exchange in Egypt:

This component will focus on formulating clear policy recommendations needed to create, regulate and monitor the market for industrial waste exchange in Egypt. Activities under this component will include: (i) Conducting a review of existing regulations and legislations addressing the area of industrial waste management in Egypt; (ii) Compiling information and reviewing international Best Practices from countries such as the United Kingdom and South Africa, who have notable experience in industrial waste minimisation strategies and techniques; (iii) Conducting consultations with major concerned stakeholders to discuss policy options for formulating and regulating the market and establishing public-private partnerships for industrial waste management in Egypt, and the potential impact of the different policy options; (iv) Producing policy briefs for adoption in national strategies including the formation of Public Private Partnerships in the field of industrial waste management and the creation of financial incentives for investments in this field.

Component 3: Raising awareness and building capacities of stakeholders on the industrial waste exchange programme:

Under this component capacity building activities will be implemented targeting key support institutions and stakeholders to enable them to gain the required knowledge and understanding of the industrial waste exchange system and increase their capacity in

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taking the necessary decisions, and in planning and delivering the appropriate support services for waste generators, users, and recyclers.

Sub-component 3:1: Awareness raising activities, including: (i) Organizing workshops and roundtable discussions with the major concerned stakeholders, including governmental authorities, industry, investors, NGOs and research & development institutions to raise their awareness about the initiative undertaken through this project to build an integrated and sustainable industrial waste exchange system in Egypt; (ii) Developing and launching a marketing campaign to inform the public about the newly developed industrial waste exchange system.

Subcomponent 3.2: Capacity building of stakeholders, including: (i) Conducting study tours to countries with successful experiences in developing industrial waste management systems (e.g. the industrial symbiosis networks and programmes in Kalundborg - Denmark, Landskrona - Sweden, and the Humber region in the UK, as well as the industrial waste exchange programmes in South Africa and Brazil). Participants in the study tours will include, inter alia, the Basel Convention Regional Centre for Training and Technology Transfer for Arab States - Egypt (BCRC-Egypt) as one of the main stakeholders with the critical mandate of defining policies, as well as implementing projects and training programmes in the area of hazardous waste management. Other key stakeholders will include the Egyptian Environmental Affairs Agency, the Industrial Development Authority (IDA) as well as business and investor associations; (ii) Provision of technical training, coaching and mentoring activities towards enhancing the capacities of competent stakeholders, key support institutions and industry representatives, and promoting the exchange of experiences in the various steps of the implementation of the waste exchange system; (iii) Exploring and developing models of green entrepreneurship programmes for SMEs in the area of waste exchange system, and facilitating linkages with financial and non-financial service providers.

Component 4: Green Entrepreneurship Programme Development through the implementation of 3 demonstration projects in IWEX in the select pilot area:

Through this component technical support services will be delivered to industrial waste generators and users/recyclers of waste with special focus on SMEs and young entrepreneurs to support them in waste management processes. This will include (i) Identifying 3 pilot projects to exchange specific types of industrial wastes, determined through the inventory developed under component 1; (ii) Matching the producer(s) of industrial waste with potential user/recycler and identifying the technology to be used; (iii) Conducting rapid situational analysis from the perspective of the generator and recycler of waste (especially SMEs and entrepreneurs) to assess the technical feasibility of the pilot; (iv) Assisting in the preparation a technical and financial feasibility study for the project; (v) Providing the necessary non-financial technical assistance services for the implementation of the project and introducing know-how and innovative methods and techniques for the recycling of waste; (vi) Linking the user/recycler of waste to existing sources of finance; (vii) Supporting recyclers in acquiring the necessary certificates that provide their products with a comparative advantage in the local as well as the international market, and linking them with large enterprises.

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Component 5: Project Management: Under this component, all activities related to project management will be addressed including the establishment of a project management unit hosted by Egypt's National Cleaner Production Centre under the Industrial Council for Technology and Innovation and appointing the responsible staff. An advisory board will also be established for the project to include the relevant stakeholders, with a strong representative by the private sector as important partners to provide key advice and guidance to the project throughout its life span.

3. Project Cost Estimates

3.1 The project costs are primarily for advocacy, awareness, general and technical capacity building activities as well as study tours. The total cost of the project is budgeted at USD 2 M, to be provided through resources of the MENA Transitional Fund. The cost-sharing portion provided by the implementing agency is related to in-kind cost, such as staffing (except for the particular expertise required), collecting of information and conducting rapid assessments, as well as field visit costs. 3.2 In line with the MENA Transitional Fund Agreement, the African Development Bank acting as the ISA, is eligible to charge the project expenses related to the provision of guidance and support to the implementing agency, such as staff time, travel requirements and staff expertise. In this regard, the project has allocated an amount of USD 60,000 for expenses incurred by the ISA over 3 years.

USD Local Component Foreign ComponentProject Direct Costs 1,940,000 0% 100%Project Indirect Costs

60,000 0% 100%

Total Costs 2,000,000 100%

3.3 Cost estimates by components:

The large majority of the project components relate to services, including consultancies, study tours and trainings. Goods purchased will include a vehicle, as well as computers and office equipment and supplies.

Component USDServices (incl training and study tours) 1,850,000Goods 60,000Works 0

4. Procurement

4.1 In line with the MENA Transitional Fund Agreement, all procurement activities under the project will comply with the rules and regulations of the AfDB. The procurement activities under the project, excluding the ISA charges, consist of: (1) consultancy services, for a total of

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USD 1,675,000; (2) study tours for USD 175,000; and (3) goods for USD 60,000, in addition to contingency costs of USD30,000.

4.2 Prior review will be conducted for all procurement activities to ensure compliance with Bank rules and regulations. The Bank will ensure competitive bidding will be conducted.

4.3 Mode of Procurement of Services

4.3.1 The bulk of activities envisaged will be procured under consultancy services, either through individual consultants or firms. These include activities under all five components of the project as detailed in the Annex entitled “Procurement of Activities”. A total amount of USD 1,675,000 has been allocated to services procured through consultants, while USD 175,000 has been allocated to study tours.

4.3.2 In general, services will be procured through a competitive bidding process, in line with the Bank’s rules and procedures of the procurement of consultants, dated May 2008 and revised July 2012. In the specific case of specialized training on industrial waste management, given the rare expertise available globally, the project should be able to procure the services of one of the specialized entities in South Africa, Brazil, the UK or Sweden, through direct negotiations. This is justified by the fact that this kind of expertise is rare to find, and in Africa where the contexts are similar, is only available in one country.

4.3.3 Procurement of Goods for computers, office equipment and a vehicle will be conducted through national shopping.

4.3.4 Procurement for Training ActivitiesThe three Study Tours envisaged, will be conducted to countries with experience in IWEX such as South Africa, the UK, Brazil, the Nordic countries, or others as relevant.

5. Implementation

The project will be implemented over a period of 3 years. Physical implementation is expected to start immediately upon approval of the proposal and fulfillment of disbursement conditions, including the opening of a special account. This is expected to be conducted by September 2013, and continue till September 30, 2016. Annual work plans and procurement plans will be provided by the implementing agency upon the launching of the project.

6. Monitoring and Reporting

The implementation progress of the project will be monitored through on-going consultations with the implementing agency, in addition to fielding of supervision missions as per Bank rules. An advisory Committee will be set up to provide overall guidance for the project. Quarterly Progress Reports will be required from the project implementing unit, as well as annual external audit reports, as per Bank rules.

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7. Financing and Disbursement Arrangements

Resources for the project will be channeled to the Bank in accordance with the MENA Transitional Fund agreements with ISAs. Funds from the Bank to the Implementing Agency, SFD, will be in accordance to the Bank rules as follows:

A Special Account, in USD, will be opened in a bank in Egypt in the name of the ENCPC, and will be used to disburse the grant proceeds.

The Government of Egypt is required to officially notify the Bank with the Special Account number and provide the Bank with (3) original copies of the authorized signatories of the account.

Upon fulfillment of the above, the ENCPC will be eligible to request a first disbursement of up to 25% of the total grant amount, to start implementation of the agreed upon activities. Further disbursement requests will follow the Bank rules on disbursement.

Last disbursement date is March 31, 2016, ie six months before the closing date of the project.

8. Conclusions and Recommendations for Bank’s Consideration

In conclusion, the Bank is requested to approve being an ISA for this project, for which resources will be forthcoming from the MENA Transitional Fund.

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Results-based Logical Framework

Country and project name:

EGYPT : Green Growth- Industrial Waste Management and SME Entrepreneurship Hub in Egypt

Purpose of the project :

Develop a sustainable and integrated industrial waste exchange (IWEX) system in one industrial zone, positioned as a Green Entrepreneurship Hub, linking industrial wastes generators, potential users and recyclers to improve cross-industry resource efficiency, promote the development of new innovative SMEs, create green job opportunities, reduce the environmental impact of industrial waste and contribute to the enhancement of lives of Egyptian citizens.

RESULTS CHAINPERFORMANCE INDICATORS MEANS OF

VERIFICATION

RISKS/MITIGATION MEASURESIndicator

(including CSI)

Baseline Target

IMPA

CT

Impact Symbiotic waste exchange programs promoting re-usage and recycling of industrial waste improve resource efficiency, creates jobs and contributes to reduction of GHG emissions. Policies and regulations are adopted to scale up IWEX across industrial areas.

No industrial

waste exchange

system exxists

Policy options developed and a

pilot setup for demonstration

purposes

Project Completion

Report

OU

TCO

MES

Outcome 1An Industrial Waste Exchange System in one industrial zone is set up and utilized as a pilot for scalability.

Establishment of system and its utilization

No system 1 Project Completion Report

Utilization of a new system requires capacity building. Capacity building and awareness campaign have been factored in.

System needs to be regulated to gain user’s confidence. This

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will be facilitated through the policy component.

System needs to be sustainable. Registration of users will be initially against a fee. Other fee structures will also be considered for adoption.

Outcome 2 Green jobs have been created through the innovative area of Waste exchange

No. of new entrepreneurship initiatives and jobs created

0 Green entrepreneurshi

p hub with 3 demonstration

enterprises supported in one

industrial zone creating 50

direct and 150 indirect jobs

OU

TPU

TS

Component 1Industial Waste Mapping and development of inventory

Output 1.1

Output 1.2

Component 2Policy Advocacy

Output 2

Component 3Awareness and Capacity building

Output 3.1

Output 3.2

Component 4:Green Entrepreneurship Devt Program

Output 4

Component 5:Project Mgmt

Surveys and evidence based analysis

Analysis in one zone

Inventory in one zone

Policy Briefs

Awareness campaign

Capacities built

Jobs created

0

0

0

No known demand

0

4

2

3

Utilization of IWEX system

Green entrepreneurship programme established

50 direct and 150 indirect

Project Reports

Project Reports

Project Reports

Project Reports

KE COMPONENTS INPUTS

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Y AC

TIVI

TIES

Component 1 : Evidence-based information and setting up of inventory

Component 2: Policy Advocacy

Component 3: Capacity building

Component 4: Demo projects

Component 5: Project management

Component 1: Studies and surveys

Component 2: Consultations

Component 3: Trainings, consultants, study tours

Component 4: resources

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Annex – Procurement of Activities under the ProjectActivity Procurement Method Estimated Budget (USD)

Component 1: Mapping of the industrial waste at the enterprise level in the selected pilot area (300,000 USD)1. Mapping of industrial waste, through desk review, survey, and

analysisIndividual 50,000

2. Developing an inventory and database of the industrial waste

Firm, QCBS 250,000

Component 2: Developing policy recommendations towards an enabling environment for IWEX (200,000 USD)3. Review of existing regulations and legislations Firm QCBS 200,000

4 Compiling International Best Practices5 5 Awareness seminars with stakeholders6. Production of policy briefsComponent 3: Raising awareness and building capacities on IWEX programme (650,000 USD)7. Dissemination workshops on national and local levels shopping 100,0008. Develop and launch a marketing campaign Individual 75,0009. 3 Study tours, for 12 pax each N/A 175,00010. Building technical capacities of stakeholders, coaching and

mentoring activities in integrated waste mgmtfirm

150,00011 Technical training on green entrepreneurship to 30 pax, four times

per year for 3 years.Individuals 150,000

Component 4: Implementation of 3 demonstration projects in IWEX in pilot area (290,000 USD)12 Consultant for identification of pilot Individual 50,00013 Rapid technical assessment of generators and recycler of

industrial wasteIn-kind

14 Recruitment of local consultant over a period of 6 months to prepare technical and financial feasibility study, manage bidding process, and provide assistance in operation and maintenance of system (for 3 pilots)

Individual 90,000

15 Recruitment of international consultant for technical support, on a retainer basis for 6 months (for 3 pilots)

Individual 150,000

Component 5: Project Managmenet (USD 500,000)16. Recruitment of Project Manager ( 3 years) Individual

150,00017. Recruitment of Deputy Project Manager ( 3 years) Cost-sharing18. Recruitment of 3 junior technical engineers (3 years) Individual

150,00019. Recruitment of database coordinator Cost-sharing

20 Recruitment of an Accountant Individual40,000

21. Computers and equipment shopping 40,00022 Procurement of car, recruitment of driver, insurance Shopping

40,00023 Independent external audit for 3 years 50,00024 Contingency 30,00025 ISA charges 60,000

Total 2,000,000

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