The loan is the first of three annual development finance loans for the country, which will implement changes to improve the country’s struggling public finances. This will to include measures to boost revenue collection and improve internal audit, as well as reprioritising expenditure. The funds will also help implement reforms to the country’s energy sector the promotion of clean energy and the liberalisation of the market.

Asad Alam, World Bank country director for Egypt, Yemen and Djibouti, said the programme is central to the bank’s country partnership with Egypt which will see World Bank funding to the country scaled up to $8bn over 2015-19.

“We are pleased to support the government’s reform programme of promoting fiscal consolidation, ensuring sustainable energy supply, and creating a supportive business environment for entrepreneurs,” he added.

Egypt also recently secured loans from the European Investment Bank and the European Bank for Reconstruction and Development for the construction of a power plant. The $1.3bn project will bolster the country’s energy supplies, which currently stand at 20% behind growing demand.

The World Bank’s current portfolio in the country stands at $6.47bn worth of projects raining from water and sanitation to social safety nets and financing for micro and small enterprises.