Denmark informed during the Danish-Egyptian Annual Consultations in May 2003 that Danida was to phase-out its bilateral Development Assistance on a grant basis to Egypt over a 6-year period.  The decision had been taken in consideration of the fact that Egypt was one of the middle per capita income countries according to the World Bank standards. However, Egypt’s present status as a “Programme Country” will be maintained during the phasing-out period.

During the phasing-out period based on existing allocations the country programme will include an Environment Sector Programme, a Private Sector Development Programme and the “tied” and “untied” Mixed Credits Programme. All on-going projects and activities will as far as possible be completed in consideration of ensuring the originally planned outputs. However, except for the Private Sector Development Programme, it will not be possible to initiate any new activities through grant assistance.

The overall objectives of Denmark's development cooperation with Egypt will during the phasing-out continue to promote economically and ecologically sustainable development, to improve the living conditions for the poorest sections of society, and to support the development of democratic institutions in the country. In line with these objectives the assistance will during the phasing-out be concentrated on the following: the environment, renewable energy/energy-saving measures and water and sanitation. The Private Sector Development Programme will continue to focus on job creation, increasing exports/substituting imports, environmental and working conditions improvements, etc. through transfer of know-how and technology from Danish partner companies.

- "Danida Aid Management Guidelines" ... (www.um.dk/danida/amg)

- "Danish Embassy in Egypt" ... ( www.danemb.org.eg)