PROJECT PROFILE- The Planning Ministry’s Green Governorates Initiative to make rural areas more energy- and water-efficient: Launched in late 2022 with green architectural consultancy firm ECOnsults hired to consult and project manage, the project aims to rehabilitate 175 villages across the 20 governorates that are part of the Haya Karima (Decent Life) Initiative, and certify them under the Egyptian Tarsheed rating system. The aim is to build resilience against climate change in Egypt’s largely rural economy, with ambitious goals to save 50% of per capita water consumption in the villages, and irrigation water consumption by 40%.

How much will this cost? Last year, the government earmarked around USD 45-50 bn for the full five-year timeline of the Decent Life Initiative. Green rehabilitation work of villages, including subsequent certification fees, accounts for c.30% of this budget.

Why is this important? Around 57% of Egypt’s population — or 63 mn people — lives in rural areas and consumes around a third of the country’s total distributed energy. Statistically, much of this energy consumption comes from buildings, which consume more than half of all electricity globally for heating, cooling, and lighting. “Buildings that use energy and water more efficiently are a higher-value, lower-risk asset than standard structures,” according to a seminal report by the IFC that argues the business case for green buildings and design. Building green can save up to 0.5-12% in additional costs and 37% in operational costs. Green buildings will represent a USD 1.1 tn investment opportunity in MENA by 2030, the report suggests.Meanwhile, rural areas form a significant part of Egypt’s sustainable development agenda: Agriculture constitutes 12% of our GDP, employs 25% of our workforce, and guzzles 80% of our total water budget.

Using low-tech solutions for Egypt’s villages cuts operational costs in the long term, and supports local entrepreneurship and job creation in the process. “We expect to save around EGP 20k per month on road lighting as a result of installing LED bulbs, for example,” Assistant Planning Minister Gamil Helmy told Enterprise. Those bulbs, as with other low tech solutions involved in the project, will come from companies registered under the Smart Green Projects Initiative, boosting local business. Moreover, canal rehabilitation and lining projects aim to provide 1.2 mn jobs annually, raising the market value of agricultural land by 30%.

Explaining the Tarsheed rating system: The villages and governorates covered in the initiative will be certified by the Egyptian rating system for buildings, Tarsheed, awarded by the Egyptian Green Building Council. Tarsheed adapts international environmental rating standards to an Egyptian context, and is more affordable than global certification such as LEED. The rating process looks at measurable improvements and financial savings in three main aspects of each village: Its energy consumption, water use, and resources. Some criteria include natural ventilation, pump motor efficiency, irrigation efficiency and a solid waste management plan, with a prerequisite of saving 30% of energy overall.

ESG standards can open up assets to funding options: The certification process creates a clear definition of a green building and avoids self-reporting that can lead to inconsistent standards and green washing, according to developers, bankers, and government officials surveyed in an IFC report. Importantly, certification “opens the possibility of the asset being eligible for green bonds and other types of financing.”

The first phase intends to certify 20 villages — one in every governorate under the Hayah Karima scheme — by the end of 2024. The first village to receive certification was Fares Village, in Kom Ombo, Aswan, which was showcased at COP27 as a prototype for further projects.There are 10 more being considered now following visits from ministry and ECOnsult representatives, including Saud Island in Sharkia, Kafr Saad Al-Balad in Damietta, Qarun in Fayoum, Lwaa Sobeih in the New Valley and Umm Douma in Sohag Governorate.

What rehabilitation works are involved? Installing solar cells for street lighting and smart meters for electricity/natural gas in homes and government facilities are some of the measures villages can expect to see, Helmy explains. Measures to save water, he continues, include “rehabilitating canals, using treated wastewater for irrigation, and installing a means to collect air conditioner water for reuse. We’ll also be working with civil society organizations to implement afforestation projects.” The ministry is working with architecture firm ECOnsult to implement natural cooling techniques and reduce reliance on AC units, as we previously reported.

These measures are going to have tangible results for individual citizens, too: “Farmers can expect to save EGP 4.2k annually per acre as a result of canal rehabilitation, and see an improved agricultural productivity per year by 30%,” Helmy explained. “Installing biogas units in villages will save each family EGP 1.5k annually and will provide them a safe means of disposal for their animal/agricultural waste. The units have an output capacity of 100 liters of organic fertilizer — that’s enough for 5 acres.”

What can we expect to see next? Once the first phase of the initiative has been completed by the end of 2024, the second phase of the initiative will begin to rehabilitate 175 villages, with a view to awarding a prize for the best green village in the country. “The idea is that we’re setting a pathway,” ECOnsult CEO Sarah El Battouty told Enterprise. “Each village serves as a symbol of a green community, from which other villages can take the experience and try it out for themselves.”

Tags: