The International Finance Corporation (IFC) has partnered with Orascom Development Egypt (ODE), the largest subsidiary of Orascom Development Holding (ODH), to enhance energy and water efficiency and reduce greenhouse gas (GHG) emissions at several hotels in El Gouna, ODE’s flagship Red Sea destination.
As part of this collaboration, IFC is providing ODE with a $155 million Sustainability Linked Loan (SLL), comprising tranches of $96 million and €55 million. This loan will support sustainable upgrades, including renovations at the Mövenpick Resort and Spa El Gouna. It also aims to refinance a portion of ODE’s existing debt, optimizing its financial structure.
The SLL will enable ODE to implement energy-saving measures such as heat pumps and solar heaters while promoting water conservation and other resource-efficient initiatives. These efforts are expected to cut non-renewable energy consumption by up to 50% and reduce water usage by at least 20%. Notably, this is the first SLL issued by a tourism and real estate company in Egypt, with verification from Moody’s.
Additionally, IFC will assist ODE’s hotels in El Gouna in obtaining EDGE certification for green buildings. This certification, developed by IFC, facilitates cost-effective and resource-efficient construction.
El Gouna, a multicultural hub along Egypt’s Red Sea coastline, has long been recognized for its sustainability efforts. It was the first African and Arab destination to receive the UN Global Green Town award and boasts certifications like EarthCheck, Green Key, and ISO environmental standards. Over 20% of El Gouna’s energy is generated from solar power, and its water treatment plants supply one-third of its irrigation water.
Egypt’s tourism sector, a critical driver of the national economy, contributed 8% of GDP in 2023 and employs millions. This partnership aligns with Egypt’s National Climate Strategy, which aims to improve the sustainability and competitiveness of the tourism industry while boosting economic growth.
“This collaboration with IFC marks a significant milestone in our mission to build sustainable, integrated communities,” said Omar El Hamamsy, Group CEO of Orascom Development. “El Gouna exemplifies our commitment to harmonizing development with environmental stewardship, creating vibrant destinations that support Egypt’s growth while fostering global sustainability.”
IFC Vice President for Africa Sérgio Pimenta emphasized the importance of the tourism sector, stating, “This partnership underscores our shared dedication to a sustainable tourism model in Egypt, which is essential for job creation, foreign exchange, and economic resilience.”
The initiative aligns with the World Bank Group’s Country Climate and Development Report (CCDR) and its Country Partnership Framework (CPF) for Egypt, which promote private sector engagement and climate-resilient development.
Since its inception in Egypt in 1975, IFC has invested and mobilized nearly $9 billion across various sectors, including infrastructure, renewable energy, and climate finance. This partnership further strengthens Egypt’s commitment to sustainable development and green tourism.
