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ITALIAN EGYPTIAN DEBT FORDEVELOPMENT SWAP PROGRAMANNUAL REPORTMay 2006

Italian Egyptian Debt for Development Swap NODCCPWFPWNRDPWRRITSUNGO Association for the Advancement of EducationAgricultural Experimental StationNGO Association for the Development and Enhancement of WomenAgricultural Research CentreCentral Bank of EgyptCentral Labouratory for Environment Quality Monitoring - NWRCNGO Cooperazione per lo Sviluppo dei Paesi EmergentiCounterpart Fund of the Debt Swap programEgyptian Environmental Affairs AgencyGeneral Authority for Education BuildingNGO International Centre for Environment and DevelopmentItalian Egyptian Debt Swap ProgramInternational Fund for Agricultural DevelopmentExecutive Organization for Industrial and Mining Projects – MOFTIIntegrated Migration Information SystemManagement Committee of the Debt Swap programItalian Ministry of Foreign Affairs – General Directorate for CooperationMinistry of Agriculture and Land ReclamationMedio Credito Centrale ItalianoMinistry of Communication and Information TechnologyMinistry of Insurance and Social AffairsMinistry of Manpower and EmigrationMinistry of FinanceMinistry of Foreign Trade and IndustryMinistry of Health and PopulationMinistry of TourismNational Council for Childhood and MotherhoodNational Council for WomenNGO New Vision for DevelopmentNational Water Research Centre - Ministry of Water Resources and IrrigationProject Management UnitSupreme Council of AntiquitiesStrategic Research UnitUnited Nations Development ProgrammeUnited Nations Educational, Scientific and Cultural OrganizationUnited Nations Office for Drug Control and Crime PreventionWorld Food ProgrammeWest Nubariya Rural Development ProgrammeWater Resources Research InstituteTechnical Support Unit to the Debt Swap Management CommitteeIEDS Annual Report 20062

Italian Egyptian Debt for Development Swap ProgramTable of ContentsOrigins: the Debt Swap Agreement5The Counterpart Fund6Governing Bodies7Selection of Projects9Monitoring of the projects10Progress at May 200611Projects Data report1-West Noubaria Rural Development Project192-Poverty Alleviation Program213-Establishment of Data Base in Rural Areas with the Introduction of Family Health Approach234-Revitalization of Traditional Arts and Crafts and Environment in Old Cairo255-Sustainable Rural Development of Wadi El Rayan and Fayoum New Land Settlement266-Prevention and Control of the Risk of Chemical Poisoning and Unsafe Handling of Chemicals287-Marketing Link Programme: Linking Crafts Producers from Marginal Communities to National and International Markets308-Multi Faceted Women’s Development Project in Minya Governorate329-Completion of Pottery Village3410-Information and Communication Technologies to Foster Egypt’s Sustainable Human Development3511-Support to Local Agricultural Cooperatives Established in Newly Settled Areas in Upper Egypt3712-Protection of Working Children in Manshiet Nasser3913-School Feeding in Upper Egypt4114-Passive In-Stream Wetland Treatment of Drain Water4315-Environmental Impact Assessment of Drinking Water Using Hand-Pump Systems4416-Directory of Services for Persons with Special Needs in Greater Cairo Area4617-Female Genital Mutilation - Free Village Model4718-The National Project for Drug Abuse Demand Reduction among Youth4919-Schools Construction5120-Think Twice5321-Expansion of the Beheira School Health Programme5522-Egyptian-Italian Environmental Cooperation Programme – Phase II5723-National Biodiversity and Natural Heritage Inventory and Monitoring Systems5924-Evaluation, Development and Execution of some Flash Flood Protection Works at Wadi Watier – South Sinai6125-Water Resources Management for Agricultural Sustainable Development in the Southern Valley6226-Leprosy Elimination in Egypt6427-Participatory Slum Upgrading in El Hallouws and El Bahtini6528-Extension of the Medical Research Institute6729-Food for Work - Leprosary Village6830-Assessment of Water Users’ Associations in Egypt70IEDS Annual Report 20063

Italian Egyptian Debt for Development Swap Program31-A Strategic Long-Term Water-Based Food Security Model for Egypt7132-Integrating Community-Based Waste Management into International Contracting7233-HIV/AIDS Prevention and Control in Egypt7434-Brackish Water Desalination for Urbanization of Remote Arid Areas in Egypt7635-Support and Development Health Programmes for Working Children in 3 Governorates through Primary Health Care Level7736-Rural Development Communication Network (RADCON)7837-Traceability of Agro-Industrial Products for the European Market8038-Street Children Protection8239-Relocation and Development of Old Cairo Tanneries to Robaiki Area – First Phase8440-The Expansion of ADEW’s Program for the Empowerment of Female Heads of Houseold in Low-Income Communities8641-Northern Cairo Public Awareness Campaign for Environmental Development Project8842-Rehabilitation of Beheira Water Supply System9043-Professional Training for Restoration and Archaeology- Recovering of the Urban Area of the Yashbak Palace9244-Improving Living Conditions of Low Income Families in Three Districts of the Governorate of Sohag9345-Development of Women Entrepreneurship and Gender Equality Promotion9446-Improving Quality of Life for Children and Families in Old Cairo9647-Sustainable Development through Enhancement of NGOs Kindergarten Services9848-Improving Education Quality in Siwa10049-Creation of Sustainable Job Opportunities to Alleviate Poverty and Unemployment in Minya10250-Improving Living Conditions of Children with Special Needs in the Districts of Omranya and El Saff (Giza)10451-Infrastructural Support to External Employment Department of the Ministry of Manpower and Emigration10552-Dolphins Habitat Conservation and Sustainable Use10653-Pilot Project for Green Corridor108IEDS Annual Report 20064

Italian Egyptian Debt for Development Swap Program1 Origins: the Debt Swap Agreement“Debt Swap” is shorthand for a transaction in which a government or organization in a creditorcountry retires a fraction of a developing country’s external debt, in exchange for acommitment by the debtor government to invest local currency in designated programs. Inessence, the debt swap concept can also be viewed as a form of foreign assistance to a debtorcountry by its creditors, whether these creditors are commercial institutions or simply creditgranting governments.Italy and Egypt signed the “Debt-for-Development Swap” agreement in Rome on February 19,2001 with the aim of converting eligible Official Development Assistance (ODA) bilateral debtowed by the Arab Republic of Egypt to the Italian Republic into financial resources toimplement development projects in Egypt. The total amount of debt subject to swap operationsunder the Agreement is approximately 149 million for a period of five years (July 2001 – July2006).ITALIAN EGYPTIAN DEBT SWAP The Italian - Egyptian Debt Swap (IEDS) was established by a bilateralAgreement between Italy and Egypt, signed in Rome on February, 2001. The aim is to convert eligible Official Development Assistance (ODA) debtowed by Egypt to Italy into financial resources to implement developmentprojects in Egypt. The total amount of debt subject to swap operations under this Agreement isabout USD 149 millions for a period of 5 years: 9/7/01 – 8/7/06. Funds generated by the debt swap should finance development projects aimedmainly towards human development, poverty alleviation and environmentprotection.IEDS Annual Report 20065

Italian Egyptian Debt for Development Swap ProgramEgypt is one of a number of middle-income countries that have taken advantage of the ancial plan.IEDS Annual Report 20069

Italian Egyptian Debt for Development Swap Program5 Monitoring of the projectsFinancial and technical monitoring is very important for good management of the fund andthe sustainability of the projects. Every six months all projects are required to submit aprogress report to the MC. This specifies achievements, activities, results and expenditureaccording to the work plan targets. The progress report, which includes technical andfinancial data, is drafted according to a standard format.The TSU assist the Projects to draft the progress reports correctly, while at the same timeimproving the performance of the staff of the projects on technical and financialmanagement and thus adding to their skills base.MONITORING All projects are subject to close technical and financial monitoringduring their life cycle. Every six months each project has to present a technical and financialprogress report to the TSU. Field visits and regular meetings with projects staff are carried out bythe TSU.For financial monitoring the TSU has adopted the techniques of “Performance Budget”and “Activity Based Financial Planning” where expenditures are related to activitiesimplemented. Assisting the projects to adopt this vision required full involvement of theTSU in the area of capacity building, institutional empowerment and knowledge transfer toraise and upgrade the skills of the projects' staff. The philosophy behind this is not only tofacilitate the monitoring activities but also to express a strong commitment towardsimproving national institutions performance through capacity building. Within this widebroader vision the monitoring technique becomes part of the project learning processwhich eventually results in enhancing the project performance in management andreporting.When the necessary monitoring is done with an external auditor, this indicates the financialperformance of the implementer, and avoids any mismanagement of funds.IEDS Annual Report 200610

Italian Egyptian Debt for Development Swap ProgramCAPACITY BUILDINGThe monitoring activity of the TSU is extremely helpful in identifying thespecific needs of the different partners in relation to the management ofdevelopment projects. As a consequence, interventions for capacitybuilding are carried out by the TSU in order to improve projectsperformance, management and sustainability.Actions for capacity building are developed through: meetings with projects staff; themed workshops; guidelines and tools for project managementSYNERGIES AND LINKSIn order to strengthen projects IMPACT and SUSTAINABILITY, theTSU is deeply involved in promoting synergies and links among projects.This is achieved by facilitating meetings and specific activities involving: Projects funded by IEDS; Projects funded by the Italian Cooperation; Initiatives of international institutions and other donors.6 Progress at May 20066.1 Projects financedThe Italian Egyptian Debt Swap program finances 54 development projects, including pr.54concerning TSU running costs, with a total budget of EGP 835,284,174 as indicated in thefollowing list.IEDS Annual Report 200611