Concerns about the proposed EBRD loan to Kuwait Energy

This analysis looks to the proposed loan of the EBRD to Kuwait energy, scheduled for approval on 29 May.

Primary findings are that:

• The EBRD failed to properly identify the beneficiary of the loan, or the country where it is incorporated (the tax haven Jersey).
• The fossil fuel nature of Kuwait Energy's drilling will fail to improve development or social justice in Egypt. While the EBRD claims to prioritise renewable energy, the reality shows a commitment to further oil & gas extraction, one of the few sectors that can easily attract capital.
• The EBRD's miscategorisation of this project as unlikely to have major impacts enabled the bank to avoid adequate impact assessments or due diligence.
• By focusing merely on disclosing revenue payments and not ensuring oil contracts are published, the EBRD is effectively undermining international best practices on transparency.
• The loan is presented as a means to reduce heavily polluting gas flaring. However, these will make up only a small part of the project, if they take place at all. The briefing argues that the "gas flaring" element was used to disguise a loan essentially geared towards general oil extraction operations.