Al-Ahram Weekly On-line 23 - 29 November 2000 Issue No.509
Published in Cairo by AL-AHRAM established in 1875

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Anti-pollution bank credit

By Sherine Nasr

Although still a minority in Egypt, some banks are becoming convinced of the need to adopt environment-friendly policies by extending credit to anti-pollution projects which are cost-effective on the long run.

Among these is the United Bank of Egypt (UBE). Established in 1997, UBE, according to its Chairman Saif Coutri, has decided to adopt a responsible environment policy which makes sound business sense. "The bank strongly believes that it is the duty of the banking sector in Egypt to help fund (institutions) complying with environmental rules," Coutri said. Prioritising the bank's efforts in this vital sector has earned UBE the epithet "Egypt's environment bank."

The UBE recently signed a LE10 million agreement with the Social Fund for Development (SFD) to finance operations which comply with the Environment Law issued in 1994, mainly in brick factories. "Since its allocation in February, we have helped finance 12 projects seeking advanced techniques to comply with this law," said Coutri

The bank recently established two environmental services companies: Global Environment and the Egyptian Environment Management Corporation. The services of both companies range from studying appropriate solutions for different industrial wastes to providing consultation on sound environmental operating measures.

The UBE has also funded nine water desalination plants in Sinai serving some 33 hotels and resorts where "the environment perspective was a prerequisite for finance" according to Coutri.

The bank has also extended credit to two recycling factories for organic fertilisers in the governorates of Daqahliya and Beni Suef at a daily capacity of 260 tons. The bank's main target, nevertheless, is to stimulate the interest of other members of the banking sector in funding environment-related projects by holding meetings with them for this purpose "which is a very challenging task. Yet, we hope that financial institutions will eventually become convinced that funding environmental compliance is not only a social role, but actually a profitable business proposition in the long term," said Coutri.

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