The African Development Bank (AfDB) will likely back out of funding energy projects as part of the USD 500 mn second tranche of its development loan if the feed-in tariff projects fail to get an endorsement from international finance institutions, an AfDB source has reportedly told Al Borsa. This will add a new dimension to the issue of international arbitration for feed-in tariff contracts, where the Ismail government’s insistence on domestic arbitration has been scaring-off international funders. The AfDB board will vote on greenlighting the second tranche of the USD 1.5 bn development loan at its meeting in October. The board’s decision will be based in a comprehensive report on the government’s development plans and project pipeline compiled by the bank’s delegation which visited Egypt in June, in addition to the reform agenda agreed upon by the delegation and the Egyptian government. It is unclear whether international arbitration featured in these meetings.